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MODERN  METHODS  IN 
THE  OFFICE 


MODERN 
METHODS  IN  THE  OFFICE 

HOW  TO  CUT  CORNERS  AND  SAVE  MONEY 


BY 
H.  J.  BARRETT 

author  of 
"dollars  and  sense" 


4455J 


HARPER  y  BROTHERS  PUBLISHERS 

NEW   YORK   AND    LONDON 


Modern  Methods  in  the  Office 
Copyright,  1918.  by  Harper  &  Brothers 
Printed  in  the  United  States  of  America 


5  541 


CONTENTS 

CHAP.  P^^^ 

•v)  Foreword *^ 

^  I.     Typing  and  Correspondence 1 

^  Typing  Signatures  Prevents  Trouble— Renewing  Typewriter 

Ribbons— Measuring  Typed  Matter— Increasing  the  Life  of 
Carbon  Paper— How  to  Improve  a  Business  Letter — Office 
Time-savers — How  Daisy  Bennett  Secured  a  Merited  Pro- 
motion—Office Economies  Which  are  Worth  While— For  the 
^1  Stenographer  Who  Seeks  Efficiency— Tips  for  Typists— Let- 

*v)  ters:     Their    Physical    Appearance — How    to    Obtain    Good 

V  DupUcates  and  Triplicates  on  a  T>'pewriter— Carbon  Copies 

vs.  Press  Copies;  Plain  Envelopes  vs.  Window  Envelopes- 
Dictation  by  Telephone— A  New  Wrinkle  in  Business  Cor- 
respondence—Saving Typists'  Time— Is  Your  Business  Cor- 
respondence Up-to-date?— Cutting  Correspondence  Costs — 
For  the  Stenographer— A  Simple  Idea  Increases  this  Stenog- 
rapher's Speed— A  Time-saver  for  Typists— Pointed  Para- 
graphs for  Enterprising  Typists— A  Carbon  Copy  Inclosed 
with  the  Original  Letter— Envelopes  of  Various  Colors  Serve 
to  SimpUfy  Sorting  of  Mail— Efficiency  Principles  Eliminate 
Ten  Typists. 

II.    Problems  of  Personnel^ 34 

Efficiency  in  the  Office— Quantitative  Tests  for  the  Selec- 
tion of  Employees — Salary  and  Bonus  for  Typists— How 
Good  Management  Stimulates  Employees  to  Their  Best 
Efforts— Increasing  the  Efficiency  of  a  Stenographic  Force— 
An  Equitable  Distribution  of  Work  Means  Contentment— 
A  Simple  Plan  Which  Changed  the  Mental  Attitude  of  This 
Office  Force— Saving  Time  in  Office  Work— Hiring  Help  Scien- 
tifically—Are You  Mentally  Subnormal?- A  Concern  with 
the  Right  Spirit— How  to  Hire  Men— Saving  Defivery  Ex- 
pense—How to  Hire  Competent  Employees— "  An  Executive 


CONTENTS 

CHAP.  PAGE 

Should  Possess  a  Good  Working  Knowledge  of  Psychology," 
says  the  President  of  this  Hardware  Concern — Reducing  Labor 
Turnover  More  than  One-half — Test  Yourself  by  this  Stand- 
ard— "The  Man,  Not  the  ^Money,  Is  What  Counts  ,"says  this 
Credit-man — How  Siebolt  Saved  His  Firm  $6,000  a  Year — 
The  Value  of  Personality  in  Business — A  College  Education 
,  for  Business  Men — Wanted:  Self-starters — The  Business  Man 
of  the  Futiu-e — ^Character  Analysis  in  Selecting  Employees — 
To-morrow's  Executives — Keeping  Executives  on  the  Jump 
— A  Royal  Road  to  Experience — "  Make  Apphcants  for  Credit 
Pass  an  Examination,"  says  this  Credit-man — Democracy  in 
Management— What  Makes  a  Successful  Executive — A  Passage 
from  Exodus  Solved  tliis  Business  Man's  Problem — Have  You 
Perspective? — Piece-work  vs.  Day-work — How  to  Insure  a 
Satisfactory  Volume  Under  a  Piece-work  System — "Profit- 
sharing  Meana  Permanent  Employees,"  says  this  Executive 
—Think! 

III.  Pointers  on  System 110 

A  File  within  a  File — For  the  Office  Employee — The  FiUng 
System — How  Perforations  Enable  One  to  Instantly  Locate 
a  Misplaced  Card — FiUng  Facts — "My  Partner,  the  Tick- 
ler"— Apply  the  Aquaphone  Test  to  Your  Organization — 
An  Error-proof  Receiving  System — A  Simple  System  Cover- 
ing Shipments  Returned  for  Credit — How  Henry  Brooks 
Gained  a  $10  Raise  in  Pay — The  Case  of  Melton,  the  Man 
Who  Lacked  Originahty — Scientific  Management  and  Its 
Results — Standardizing — Packing  Economies — Rules  for  Re- 
ceiving-rooms— Inter-Departmental  Mail  Service  Saves  Labor 
— "An  Efficiency  Expert  Is  Merely  a  Piece  of  Cheese" — 
Toward  Efficiency— A  $13,000-a-year  Idea— Too  Much 
System — This  Executive's  Plan  for  a  Proper  Distribution  of 
His  Time — "Graphs"  and  Their  Usefulness. 

IV.  For  the  Accountant 138 

Saving  Labor  in  Bookkeeping — Tips  for  Your  Traffic  Depart- 
ment— Efficiency  in  Filling  and  Billing  Orders — A  Penny 
Saved  is  a  Penny  Earned— "Mark  a  Definite  Due  Date  on 
Your  BiUs;  It  Means  Quicker  Collections,"  says  this  Man — 
A  Daily  Trial  Balance  Saves  Worry  and  Labor — New  Ideas 
in  Cost-keeping — A  Series  of  Collection  Letters — What  a 
Traffic-man  Discovered — Trade  Acceptances:  a  Forward 
Step — A  Short  Cut  in  Accounting — Card  Ledgers:  Time- 
and  Labor-savers. 


CONTENTS 

CHAP.  PAGE 

V.    Toward  Efficiency 156 

A  Chairless  Office  Conserves  This  Man's  Time — "Don't  Lock 
Up  Your  Desk,"  is  a  Rule  of  this  Office — Saving  Time  in 
Figm-ing  Postage  on  Parcel  Post — Reducing  Freight  Charges 
— The  Tendency  of  the  Times— The  Value  of  Business  Read- 
ing— "Don't  Carry  Your  Coals  to  Newcastle,"  says  this 
Successful  Young  Executive — Foresight:  Its  Value  in 
Launching  New  Enterprises — How  One  Man  Secured  a 
Promotion — $150,000  for  Information — What  Analysis  Has 
Done  for  Modern  Business— Getting  the  Right  Attitude — 
Heat,  Ventilation,  and  Efficiency — Are  You  Avaihng  Your- 
self of  This  Institution's  Facihties? — Commercial  Abbrevi- 
ation in  the  Export  trade — The  Government's  Pamphlets 
on  Business— Methods,  Not  Money,  Win  Success — How  the 
Bureau  of  Standards  Serves  the  Business  Man — Why  the 
Business  Man  Should  Understand  Economics — Overstock- 
ing +  Poor  Accounting  +  Quahty  Stock  =  Failure — 
Is  Your  Business  Suffering  from  Arterio-sclerosis? — Job 
Analysis  in  Modern  Industrial  Plants — How  a  Bank  Can 
Help  a  Young  Business  Man — "Most  Concerns  are  Over- 
stocked," says  this  Business  Man — Centralization :  The  Mod- 
ern Tendency  in  Business — A  Problem  in  Organization — 
The  Work  of  the  United  States  Bureau  of  Standards — 
Why  a  Shorter  Work-day  Increases  Production. 


FOREWORD 

Many  of  the  articles  in  this  volume  were  previously 
pubUshed  in  the  New  York  Evening  World  and  other 
newspapers,  under  the  title,  ''Dollars  and  Sense."  It 
is  in  response  to  the  requests  of  readers  that  they 
are  republished  in  book  form,  together  with  several 
which  now  appear  in  print  for  the  first  time. 

From  messenger  to  manager,  the  writer  has  sought 
to  touch  upon  the  needs  of  every  one  in  the  office. 
Stenographers  and  typists  will  find  more  than  a  score 
of  articles  devoted  to  their  interests. 

Needless  to  say,  the  volume  makes  no  pretense  at 
being  a  comprehensive  treatise  upon  office  work  or 
management.  But  the  pointers  offered  are  culled  from 
every-day  experience  and  possess  the  merit  of  being 
thoroughly  practical. 


MODERN  METHODS  IN 
THE  OFFICE 


MODERN   METHODS   IN 
THE   OFFICE 

I 

TYPING  AND  CORRESPONDENCE 

Typing  Signatures  Prevents  Trouble 

''Fifty  years  ago  a  good  handwriting  was  a  valu- 
able asset  for  a  young  man,"  said  a  local  office  manager. 
"Every  'Help  Wanted'  ad.  demanded  legible  handwrit- 
ing as  a  requisite  for  clerical  jobs.  The  result  was  that 
our  forebears  developed  a  beautiful,  clear  chirography. 
They  had  to.  An  illegible  handwriting  was  a  distinct 
handicap  in  business  life.  It  meant  danger  of  serious 
errors  in  transactions  conducted  through  the  mail. 

"Chirography,  however,  is  now  well-nigh  a  lost 
art.  The  present  generation  sees  no  necessity  for 
developing  a  clear  handwriting,  because  of  the  om- 
nipresent typewriter.  The  result  of  this  attitude  is 
that  millions  of  business  men  actually  cannot  sign 
their  names  so  that  one  can  read  them. 

"We  have  had  considerable  trouble  right  here  be- 

i 


MODERN    METHODS    IN    THE    OFFICE 

cause  of  this  fact.  Many  of  our  executives  are  lament- 
ably weak  in  chirography.  For  a  long  time,  letters 
in  answer  to  our  correspondence  arrived  addressed  to 
names  which  were  never  represented  on  our  pay-roll. 
The  recipient  had  been  forced  to  make  a  wild  guess 
at  the  writer's  signature. 

"A  very  simple  idea  has  obviated  the  trouble.  Now 
every  letter  which  leaves  here  contains  the  full  name 
of  the  dictator,  typed  in  the  lower  left-hand  comer, 
with  the  stenographer's  initials  beneath  it;  this  in 
addition  to  the  signature.  I  expect  to  see  this  idea 
universally  adopted  in  business  correspondence." 

Renewing  T3TDewriter  Ribbons 

"In  a  large  office,"  said  an  office  manager,  ''the 
cost  of  typewriter  ribbons  is  a  significant  item. 

''It  occurred  to  me  one  day  that  there  must  be  con- 
siderable life  left  in  the  old  ribbons  which  are  dis- 
carded as  worn  out. 

"I  tried  the  experiment  of  inclosing  them  in  a  re- 
ceptacle with  a  wet  sponge.  The  dried  ink  thus  be- 
came dampened.  Upon  reinserting  the  ribbons  in  the 
machines,  it  developed  that  they  had  taken  a  new  lease 
of  life.  This  plan  serves  to  materially  lengthen  the 
life  of  ribbons  and  substantially  reduces  this  expense 
factor." 

Measuring  Typed  Matter 

"Our  typists  are  paid  by  the  square  inch,"  said  an  office 
manager  who  is  in  charge  of  several  score  operators. 


TYPING    AND    CORRESPONDENCE 

"This  necessitates  the  measuring  of  all  work  turned 
out.  Formerly  I  used  an  ordinary  rule  for  this  pur- 
pose, but  have  recently  adopted  a  ver>'^  simple  device 
which  I  saw  in  use  elsewhere.  It  consists  of  a  trans- 
parent celluloid  sheet  which  is  divided  into  half- 
inch  squares  by  the  use  of  indelible-ink  lines.  Each 
square  contains  a  number  representing  the  total 
area  to  that  point  measured  from  the  top  and  left 
margin. 

"Thus,  by  merely  laying  the  sheet  over  the  type- 
written matter,  taking  care  that  it  just  registers  cor- 
rectly with  the  top  and  left  margin  of  the  latter,  the 
total  area  is  indicated  by  the  figure  appearing  in  the 
square  which  covers  the  lower  right-hand  corner. 
Simple,  isn't  it? 

"Then,  by  allowing  five  square  inches  for  ad- 
dressing the  envelope,  inserting  the  date,  name, 
address,  salutary  and  final  line,  the  total  area  in 
inches  to  be  credited  to  the  employee  is  easily  de- 
termined. 

"A  still  better  plan,  hov/ever,  and  one  which  I 
intend  to  install,  is  to  equip  each  machine  with  a 
cyclometer  which  registers  the  number  of  strokes. 
This  insures  absolute  accuracy  and  saves  labor  in 
measuring  each  piece." 

Increasing  the  Life  of  Carbon  Paper 

"What  in  the  world  are  you  doing  that  for?"  in- 
quired the  new  stenographer,  as  the  girl  at  the  next 
desk  stood  by  the  steam-pipe  and  slowly  rubbed  the 


MODERN    METHODS    IN    THE    OFFICE 

uncoated   side   of    a   carbon    sheet   over   the   warm 
surface. 

''This  carbon  is  nearly  worn  out,"  was  the  reply. 
"It  has  begun  to  render  very  dim  impressions.  Ap- 
plication of  heat  to  the  back  moistens  the  carbon 
on  the  front;  it  gradually  distributes  itseK  over 
the  surface  and,  after  it  dries,  it  gives  a  sharp 
impression  again.  This  method  increases  the  life 
of  a  sheet  of  carbon  paper  about  twenty-five 
per  cent." 

How  to  Improve  a  Business  Letter 

The  correspondents  of  a  large  Western  concern 
are  provided  with  the  following  printed  sheet  of 
instructions.  These  instructions  are  sufficiently 
general  in  character  to  apply  to  all  business  houses. 


Instructions  to  Our  Correspondents 

1.  Don't  use  a  long  or  big  word  where  a  short  one  will  do  as 
well  or  better.  For  example:  "begin"  is  better  than  "commence," 
"home"  or  "house"  better  than  "residence,"  "buy"  better  than 
"purchase,"  "Hve"  better  than  "reside,"  "at  once"  better  than 
"immediately,"  "give"  better  than  "donate,"  "start"  or  "begin" 
better  than  "inaugurate." 

2.  Carefully  avoid  such  words  and  stock  phrases  as  "beg  to 
acknowledge,"  "beg  to  inquire,"  "beg  to  advise,"  etc.  Don't 
"beg"ataU. 

3.  Don't  "reply"  to  a  letter;  "answer"  it.  You  answer  a  letter 
and  reply  to  an  argument. 

4.  Don't  say  "inclosed  herewith."    "Herewith"  is  superfluous. 


TYPING    AND    CORRESPONDENCE 

5.  Don't  say  "kindly"  for  "please."  Avoid  "the  same"  as 
you  would  a  plague. 

6.  Don't  write  "would  say."    Go  right  ahead  and  say  it. 

7.  Be  wary  of  adjectives,  particularly  superlatives.  "Very," 
"great,"  "tremendous,"  "excellent,"  etc.,  have  marred  many  an 
otherwise  strong  phrase  and  have  propped  needlessly  many  a 
good  word  all-sufficient  of  itself. 

8.  Don't  try  to  be  funny. 

9.  Carefully  avoid  even  the  appearance  of  sarcasm. 

10.  Never  use  the  first  personal  pronoun  "I"  when  writing  as 
this  company.  "We"  is  the  proper  pronoun.  Where  a  personal 
reference  is  necessary,  "the  writer"  may  be  used;  but  even  this 
should  be  avoided  wherever  possible. 

11.  There  are  some  common  grammatical  errors  so  inexcusable 
that  no  letter  bearing  the  signature  of  this  company  ever  should 
show  them.    "We  was"  should  be  cause  for  dismissal. 

12.  Don't  forget  that  certain  small  words  are  in  the  language 
for  a  purpose.  "And,"  "a,"  "the"  are  important,  and  their 
elimination  often  makes  a  letter  bald,  curt,  and  distinctly  in- 
elegant. 


Office  Time-savers 

"Here  are  a  couple  of  time-  and  money-saving  de- 
vices which  we  have  recently  apphed,"  said  the  man- 
ager of  a  concern  which,  in  addition  to  its  regular  sales, 
does  a  large  mail-order  business. 

"In  making  carbon  copies  of  an  outgoing  correspond- 
ence— which,  by  the  way,  we  have  concluded  is  much 
cheaper  and  more  effective  than  using  even  the  most 
modern  type  of  letter-press — we  were  accustomed  to  use 
one  sheet  of  paper  for  each  page  copied.  Now,  in  case 
of  a  two-page  letter,  we  use  both  sides  of  the  copjdng- 


MODERN    METHODS    IN    THE    OFFICE 

page,  thus  cutting  our  stationery  bill  for  this  item  in 
half. 

''Also  we  use  a  different-color  paper  for  the  carbon 
copies  of  the  correspondence  of  different  departments. 
This  results  in  a  great  saving  of  time  in  looking  up 
correspondence. ' ' 

How  Daisy  Bennett  Obtained  a  Merited  Promotion 

"So  Grace  Stephens  is  going  to  get  married," 
reflected  Daisy,  thoughtfully,  on  the  morning  that 
Miss  Stephens,  the  head  stenographer,  arrived, 
proudly  displaying  a  gleaming  soUtaire.  ''That 
means  that  one  of  us  girls  will  be  promoted  to  her 
position.  I  wonder  which  of  us  it  will  be.  It 
means  an  increase  of  five  dollars  a  week — five  dol- 
lars which  I  could  use  very  satisfactorily.  I  be- 
lieve I'll  make  a  play  for  it  myself,"  and  Daisy 
sailed  into  her  notes  with  renewed  vigor,  postpon- 
ing a  consideration  of  ways  and  means  for  a  leisure 
moment. 

"The  more  I'm  worth  to  the  concern  the  more 
they're  going  to  pay  me,"  mused  Daisy  at  lunch 
that  day.  "I'll  wager  I  can  find  a  lot  of  waste  and 
inefficiency  around  that  office  if  I  really  try.  With 
our  staff  of  twenty  girls,  a  little  saving  here  and 
there  will  amount  to  a  lot  in  the  monthly  balance 
sheet."  And  Daisy  returned  to  the  office,  deter- 
mined upon  unearthing  some  money-saving  oppor- 
tunities. 

"What  do  we  spend  for  typewriter  ribbons  in  a 

6 


TYPING    AND    CORRESPONDENCE 

month?"  inquired  Daisy  of  the  cashier  a  day  or  two 
later. 

"About  thirty-five  dollars,"  was  the  reply. 

Daisy  did  a  little  investigating  during  her  lunch 
hour  the  following  day. 

In  the  afternoon,  while  taking  dictation  from  the 
general  manager,  she  remarked: 

''Mr.  White  tells  me  that  we  girls  spend  thirty-five 
dollars  a  month  for  typewriter  ribbons.  I  have  a  plan 
for  reducing  that  expense  a  half." 

''What  is  it?"  inquired  Hammond,  pleased  and  sur- 
prised at  this  evidence  of  initiative  on  the  part  of  a 
subordinate. 

"I  understand  that  the  office  is  to  be  equipped  with 
new  machines,"  said  the  girl. 

"Yes,  we're  considering  the  question  right  now," 
agreed  Hanmiond. 

"If  you'll  buy  machines  with  two-color  attach- 
ments and  insert  a  one-color  ribbon,  we  can  set 
the  machine  for  black,  using  the  top  half  of  the 
ribbon;  then,  when  that's  worn  out,  set  it  for  red 
and  run  the  ribbon  through  again.  Our  present  models 
have  no  two-color  attachment;  the  type  strikes  in 
the  center  and  the  ribbons  last  only  about  two 
weeks." 

"A   mighty   good   idea,"    exclaimed   the   superior, 

studying    his    stenographer    with    renewed    interest, 

"and  one  that  had  never  occurred  to  me.      There's 

a     saving    of     two     hundred     and     ten     dollars     a 

year    just    from    the    exertion   of    a    little    common 

sense." 

7 


MODERN    METHODS    IN    THE    OFFICE 

When  the  new  machines  were  installed,  a  week  later, 
they  included  two-color  attachments. 

Some  days  later  Daisy  remarked: 

"By  the  way,  Mr.  Hammond,  I  think  that  we're 
wasting  money  on  carbon  paper.  We  obtain  it  in 
full-sized  sheets,  although  much  of  it  is  used  on 
half-sheets  and  telegram  blanks.  After  it  is  used  a 
few  times  a  sheet  is  discarded,  even  though  a  large 
proportion  of  its  surface  is  fresh.  Can't  we  obtain 
it  in  half-sheets  and  full  sheets?  Then  we'll  be 
sure  that  none  of  it  is  wasted;  that  every  sheet  is 
thoroughly  used  before  being  thrown  in  the  waste- 
basket." 

"A  very  good  suggestion,"  replied  the  boss. 
'^I'll  speak  to  White  about  it."  And  thereafter 
the  carbon  paper  was  bought  according  to  Daisy's 
plan. 

The  girl  felt  encouraged  by  this  ready  response  to 
her  suggestions,  and  became  more  interested  in  finding 
methods  of  saving  time  and  money. 

Every  few  days  she  propounded  a  new  one. 

Once  it  was  the  substitution  of  printed  reply  blanks 
to  be  filled  in  for  acknowledgment  of  orders,  instead 
of  writing  a  separate  letter  in  each  case.  This  saved 
the  labor  of  two  girls.  They  were  transferred  to  an- 
other department. 

Again  it  was  the  substitution  of  fountain  pens 
in  the  accounting  department.  This  meant  elimi- 
nation of  ''lost  motion"  in  the  constant  dipping  of 
pens. 

In  another  case  it  was  the  utiHzation  of  both  sides 

8 


TYPING    AND    CORRESPONDENCE 

of  the  second  sheet  in  making  carbons,  saving  half  the 
cost  of  writing-paper. 

And  so  it  went.  In  a  few  weeks'  time  her  ideas 
had  effected  an  annual  saving  amounting  to  her 
salary. 

Upon  Miss  Stephens's  resignation,  two  months  later, 
she  was  elevated  to  the  position  of  head  stenographer, 
and  her  envelope  contained  just  double  her  previous 
wage. 

Office  Economies  Which  Are  Worth  While 

To  buy  typewriter  ribbons  in  quantity  means  a  sub- 
stantial discount.  But,  on  the  other  hand,  many  an 
office  manager  has  discovered  that,  unless  carefully 
preserved,  they  rapidly  deteriorate  through  becoming 
dry. 

Here  is  a  method  of  insuring  the  preservation  of 
ribbons  for  an  indefinite  period.  Place  them  in  a  tin 
box  provided  with  a  lock  and  key;  line  the  bottom  of 
the  box  with  a  pad  of  cotton  batting  incased  in  a 
covering  of  cheese-cloth.  Soak  the  pad  with  glycerin, 
then,  after  placing  the  ribbons  in  the  box,  lock  it  up. 
This  will  keep  the  ribbons  fresh  and  moist. 

As  the  pad  becomes  dry,  treat  it  from  time  to  time 
with  applications  of  glycerin. 

In  offices  where  a  large  force  is  employed,  pencils 
run  into  money.  The  use  of  metal  pencil-holders  will 
save  money  on  this  item.  Instead  of  supplying  the 
staff  with  pencils  in  their  original  form,  cut  them  in 
two  and  have  them  insert  a  half-pencil  into  their 


MODERN    METHODS    IN    THE    OFFICE 

holders.  Then  every  inch  of  pencil  will  be  used  before 
the  pencil  is  thrown  away. 

One  office  manager  was  puzzled  to  account  for  the 
enormous  consumption  of  penholders.  Investigation 
disclosed  the  fact  that  the  metal  barrel  of  the  model 
he  had  been  purchasing  soon  became  so  rusty  that 
the  pen  could  not  be  easily  removed.  The  penholders 
were  broken  in  the  tussle  that  ensued  to  remove  the 
pen. 

He  purchased  a  more  expensive  holder,  one 
with  a  cork  grip  and  an  automatic  ejector.  This 
proved  to  be  a  money-saver.  The  demand  for  pen- 
holders decreased  80  per  cent.,  far  more  than  off- 
setting the  increased  investment  in  the  improved 
model. 


For  the  Stenographer  Who  Seeks  Efficiency 

"When  I  have  to  make  erasures  on  the  original 
sheet  and  carbons  are  beneath  it,  I  avoid  smudging 
the  carbons  by  placing  a  rule  under  the  original  along 
the  platen,"  says  one  tj^ist. 

"If,  as  often  happens,  certain  data  are  required 
upon  carbons  which  it  is  desirable  to  eliminate  from 
the  original,  I  avoid  two  operations  by  a  simple 
method,"  she  added.  "By  placing  an  extra  small 
sheet  over  the  face  of  the  original  and  then  typing 
the  necessary  data  upon  this  slip,  the  carbons 
register  and  that  portion  of  the  original  remains 
blank." 

"As  it  happens,"  said  another  stenographer,  "my 

10 


TYPING    AND    CORRESPONDENCE 

educational  opportunities  have  been  superior  to  those 
of  the  other  girls  in  our  office.  My  suggestion  that  I 
proof-read  all  outgoing  correspondence  for  the  pur- 
pose of  correcting  errors  in  spelling  and  punctuation 
delighted  my  employer.  He  has  developed  the  idea 
even  further  by  installing  a  bulletin-board  upon 
which  repeated  errors  are  posted,  with  the  name  of 
the  girl  making  them  appended.  This  plan  has  re- 
sulted in  greatly  increased  accuracy  among  our  office 
force  and  is  gradually  raising  the  standard  of  edu- 
cation." 

"When  making  carbon  copies,"  said  another  typist, 
"I  found  that  often  the  carbon  sheet  would  become 
wound  about  the  roller  of  the  machine,  thus  becoming 
torn.  By  binding  the  sheets  of  paper  together  with 
a  cUp  after  their  insertion  in  the  machine,  I  now  avoid 
this  difficulty." 

''Often  our  mail  directed  to  points  abroad  would 
get  away  bearing  only  domestic  postage,"  said  one 
typist.  ''To  avoid  this  I  adopted  the  practice  of 
writing  the  word  'Foreign'  in  the  upper  right- 
hand  corner  of  the  envelope  at  the  time  of  typing 
it.  This  solved  the  difficulty,  and  ,at  the  same 
time  saved  the  mailing  department  much  time  and 
worry. 

"When  making  four  or  five  carbon  copies  of  a  letter 
or  document,"  she  added,  "I  tear  off  the  top  right- 
hand  corner  of  each  carbon.  Then,  after  extracting 
the  sheets  from  the  machine,  by  holding  the  top  right 
corner  between  the  thumb  and  forefinger  and  giving 

the  sheets  a  slight  shake,  the  carbons  promptly  drop 

11 


MODERN    METHODS    IN    THE    OFFICE 

out,  thus  saving  the  trouble  of  handhng  each  sheet 
individually." 

"My  employer  was  much  pleased,"  said  another 
t}T3ist,  "at  an  idea  I  suggested  some  time  ago.    It  was 

merely  to  t j^^e  in  caps  the  words  '  not  over dollars ' 

on  the  line  intended  for  the  signature  on  his  checks. 
This  device  affords  complete  protection  against  raising 
the  amount,  as  to  tamper  with  my  typed  words  would 
mean  defacing  the  signature,  which  would  render  the 
check  void." 

Tips  for  Typists 

"Here  are  a  few  pointers  which  I've  picked  up  in 
the  course  of  the  day's  work,"  said  a  competent 
typist.  "Possibly  they'll  be  of  value  to  my  fellow- 
craftsmen. 

"I  have  found  that  pins  are  safer  to  use  in  fastening 
papers  together  than  patent  clips.  Clips  have  an  un- 
fortunate faculty  of  annexing  everything  in  their 
vicinity.  Several  valuable  papers  have  been  mislaid 
in  our  office  in  this  way.  In  using  pins,  I  take  pains 
to  see  that  the  point  is  passed  back  through  the  top 
paper,  thus  avoiding  danger  of  its  sticking  any  one 
using  our  files. 

"I  have  discovered  that  in  making  a  neat  job  of 
erasures  there  is  a  right  way  and  a  wrong  way.  I  use 
a  pencil-eraser  first  to  remove  the  top  surface  of  the 
paper;  then  I  use  the  typewriter  eraser,  blowing  the 
dust  off  at  frequent  intervals. 

"When  I  have  a  hne  in  a  letter  which  is  to  be  under- 

12 


TYPING    AND    CORRESPONDENCE 

scored  clear  across  the  page,  instead  of  striking  the 
underscore  key  fifty  or  sixty  times,  I  shift  the  carriage 
and  lock  it.  Next  I  press  the  underscore  key  do\\Ti 
until  it  touches  the  paper.  Then  with  my  left  thumb 
I  press  the  type  bar  against  the  ribbon  and  with  the 
other  hand  release  the  carriage.  It  runs  quickly  across 
the  page,  leaving  a  clean  black  hne.  Not  only  does 
this  method  save  time,  but  it  results  in  a  neater  job. 

''Occasionally  I  find  it  necessary  to  use  a  copy  rib- 
bon. To  avoid  the  necessity  of  removing  the  regular 
ribbon  at  such  times,  I  attach  a  two-  or  three-foot 
length  of  copy  ribbon  to  each  regular  ribbon  when 
the  latter  is  inserted  in  the  machine.  Then  when 
the  copy  ribbon  is  required  it  is  a  simple  matter  to 
turn  the  ribbon  reverse  until  the  copy  ribbon  ap- 
pears. 

"Often  I  am  given  reports  to  write  on  sheets  which 
are  wider  than  my  typewriter  carriage.  In  a  case 
Uke  this  I  fold  the  paper  vertically.  Then  I  insert  it 
in  the  machine  and  type  across  to  the  fold.  I  then 
skip  enough  of  the  text  to  just  fill  out  the  folded  por- 
tion and  start  on  the  next  line.  After  the  sheet  is 
covered,  I  remove  it  and  reinsert  it  with  the  previously 
concealed  portion  visible.  It  is  a  simple  matter  to 
fill  out  the  lines  with  the  portion  of  the  text  originally 
omitted. 

*'To  conclude:  Weekly  I  thoroughly  clean  my  ma- 
chine, oil  it,  adjust  the  tension,  polish  all  the  nickeled 
portions,  and  apply  a  cleaning  polish  to  all  the  black- 
enameled  surfaces.  To-day  my  machine,  which  has 
been  in  constant  use  for  two  years,  looks  as  though 

13 


MODERN    METHODS    IN    THE    OFFICE 

it  had  just  come  from  the  factory.    That  this  pohcy 
pleases  my  employer  goes  without  saying." 


Letters — Their  Physical  Appearance 

For  years  advertising-men  have  wrangled  over  the 
question  as  to  which  was  the  most  important  feature 
of  a  newspaper  advertisement — the  copy  or  the  dis- 
play. As  a  matter  of  fact,  each  is  so  important  that 
they  can  hardly  be  considered  apart.  No  matter  how 
convincing  the  copy  may  be,  a  poorly  displayed 
"ad."  will  not  pull  results,  because  it  will  not  be  read. 
On  the  other  hand,  if  the  copy  is  weak,  the  ''ad." 
will  fail,  no  matter  how  striking  the  display.  In  ad- 
vertising, then,  display  and  copy  are  equally  potent 
factors. 

The  physical  appearance  or  display  of  a  letter  is  a 
vital  element  in  its  pulling  power.  Although  not  quite 
so  important  as  in  newspaper  advertising,  it  is  a  feat- 
ure which  should  receive  careful  attention.  And  yet 
how  seldom  does  one  receive  a  business  letter  which 
is  beyond  criticism  in  this  respect. 

Generally  the  margins  are  inadequate,  the  letter  is 
not  properly  centered  on  the  page,  the  right-hand 
margin  is  ragged  in  the  extreme.  Two  and  a  quarter 
inches  is  none  too  much  for  marginal  display.  Few 
typists  allow  more  than  an  inch  and  a  quarter.  If  a 
letter  is  short,  it  should  not  be  bunched  at  the  top  of 
the  page,  but  carefully  centered — equidistant  from  the 
top  and  bottom.  As  for  spacing,  the  tendency  to-day 
is  toward  single  spacing  between  lines,  with  a  double 

14 


TYPING    AND    CORRESPONDENCE 

space  between  paragraphs  and  no  indentation  for  the 
latter.  We  are  reproducing  a  form  which  is  becom- 
ing increasingly  popular  among  progressive  business 
houses : 


Punctuation  is  another  weak  spot  with  the  average 
typist.  The  best  usage  to-day  prescribes  as  little  as 
possible.  Here  Timothy  Dexter  proved  himself  to  be 
a  century  ahead  of  his  time.  He  wrote  a  book,  you 
may  remember,  which  had  not  a  sign  of  punctuation. 

15 


MODERN    METHODS    IN    THE    OFFICE 

The  last  page,  however,  contained  a  miscellaneous  as- 
sortment of  commas,  colons,  hj^hens,  etc.,  with  the 
request  that  the  reader  insert  them  where  he  pleased. 

Quotation  marks  are  used  in  hundreds  of  cases 
where  they're  not  needed.  In  referring  to  a  magazine, 
for  example,  as  The  International  Review,  the  average 
typist  inserts  quotation  marks.    Capitals  are  sufficient. 

I  am  inclined  to  hold  the  employers  responsible  for 
the  poor  appearance  of  the  average  letter.  Ten  min- 
utes' instruction  should  be  enough  to  post  a  typist 
on  the  proper  procedure.  In  order  to  insure  uniformity, 
up-to-date  firms  issue  printed  instructions  to  their 
typists.  Those  given  below  are  copied  from  one  firm's 
book  of  instructions. 

City  and  date  must  be  written  about  three  spaces 
below  the  lowest  printed  matter  on  letter-head,  as 
follows:  Boston,  date  single  space  below,  regulated 
so  that  it  will  precede  and  extend  beyond  ''Boston" 
an  equal  distance,  the  end  of  the  date  being  in  fine 
with  margin  of  body  of  letter;  spell  the  month  in 
full,  followed  by  the  date  in  figures,  after  which  use 
comma;   add  year  in  figures  and  end  with  period. 

Paragraphs  must  begin  ten  points  from  margin 
on  a  line  with  city.  Use  single  space,  with  double 
space  between  paragraphs. 

In  closing  use  the  phrase  "Yours  very  truly"  and 
sign  "The  Jones  Company."  Have  correspond- 
ent's and  stenographer's  initials  on  line  with  margin 
on  left-hand  side  of  sheet.  Margins  must  be  regu- 
lated by  length  of  letter  to  be  written,  using  your 

judgment  in  this  respect. 

16 


TYPING    AND    CORRESPONDENCE 

The  half-size  letter-head  should  be  used  for  very 
short  letters. 

Envelopes  must  be  addressed  double  space,  with 
beginning  of  name,  street,  address,  city,  and  state  on 
marginal  line. 

How  to  Obtain  Good  Duplicates  and  Triplicates  on 
a  Typewriter 

"In  making  out  triplicates  many  typists  have  diffi- 
culty in  securing  perfect  ahgnment  on  the  copies," 
said  one  operator,  recently.  ''The  carbons  are  likely 
to  be  a  shade  above  or  below  the  Hne.  Here  is  a  plan 
which  obviates  this  difficulty. 

''Before  inserting  the  sheets,  push  the  lever  which 
operates  the  paper  release.  Then  slip  in  the  sheets, 
being  sure  that  they  coincide.  Following  this,  snap 
the  release  back  into  position,  and  you'll  find  that  your 
carbon  copies  are  in  perfect  alignment;  in  other  words, 
the  type  strikes  on,  rather  than  over  or  under,  the 
horizontal  lines." 

Carbon   Copies   vs.   Press   Copies — 
Plain    Envelopes  vs.  Window  Envelopes 

The  findings  of  the  Commission  on  Economy  and 
Efficiency  appointed  to  overhaul  the  business  methods 
in  vogue  in  the  government  departments  at  Wash- 
ington also  have  a  very  direct  apphcation  to  private 
business. 

In   comparing   the  two  methods  of  reproduction 

17 


MODERN    METHODS    IN    THE    OFFICE 

named  in  our  title,  the  commission's  verdict  was 
unanimously  in  favor  of  the  former. 

To  press-copy  1,000  letters  cost  $2.80  in  materials 
alone;  1,000  carbon  copies  cost  but  56  cents,  the  net 
saving  to  be  credited  to  the  latter  method  amounting 
to  $2.24  a  thousand.  Other  advantages  of  the  carbon 
copies  are  adaptabihty  for  filing,  neater  originals,  con- 
venience in  handling  copies  later,  and  readiness  for 
immediate  mailing  of  the  original. 

Another  point  thoroughly  covered  by  the  commis- 
sion was  the  question  of  window  envelopes.  It  de- 
veloped that  the  expense  of  addressing  envelopes  came 
to  $6.50  per  thousand.  The  new-style  envelope  cost 
but  60  cents  a  thousand  more  than  the  opaque  forms 
— in  many  sizes  but  30  cents  a  thousand  more.  The 
saving  came  to  $5.90  per  thousand,  thus  making  an 
annual  total  saving  of  $102,907  on  the  17,442,000 
envelopes  used  yearly. 

The  commission  admits  that  on  a  few  classes  of 
correspondence  the  use  of  the  window  envelope  is 
impracticable.  But  these  have  been  deducted  in  their 
estimate  of  total  possible  saving. 

Dictation  by  Telephone 

''Our  department  managers  have  considerable  cor- 
respondence to  get  out  in  the  course  of  a  day,"  said 
the  efficiency  man  of  a  great  department  store,  "but 
not  enough  to  warrant  the  assignment  of  a  girl's  en- 
tire time  to  each  manager.  Consequently,  when- 
ever   a    stenographer's    services    were    required    we 

18 


TYPING    AND    CORRESPONDENCE 

despatched  one  from  the  correspondence  depart- 
ment. 

''It  developed,  however,  that  very  often  interruptions 
delayed  the  progress  of  the  work.  A  salesman  might 
call,  or  the  department  manager's  presence  be  required 
at  the  main  office;  sometimes  a  girl  would  consume  a 
couple  of  hours  in  receiving  a  half-dozen  letters. 

'''Why  not  transact  this  business  over  the  'phone?' 
I  reflected,  one  day.  'By  keeping  the  girls  right  here, 
they  could  be  engaged  in  routine  work  constantly, 
except  when  actually  needed  for  dictation.  Further- 
more, it  would  save  the  time  required  in  going  to  and 
returning  from  the  department  manager's  desk.' 

"The  new  system  has  worked  perfectly.  Now  the 
girls  are  constantly  engaged  in  actual  productive  labor. 
Allien  an  executive  wants  to  get  out  some  letters,  he 
calls  up  the  central  office,  is  connected  with  a  stenog- 
rapher, and  rattles  off  his  correspondence.  In  case  he 
is  interrupted,  she  can  proceed  with  her  tjTDing  until 
she  is  needed  again.  And  no  time  is  wasted  in  walking 
long  distances  through  the  store." 

A  New  Wrinkle  in  Business  Correspondence 

"Here's  a  new  one  on  me,"  remarked  a  local  business 
man  as  he  tossed  the  writer  a  letter. 

"Note  that  directly  under  the  date  they've  typed 
the  phrase,  'Replying  to  your  letter  of  Aug.  21st.' 

"A  good  idea  I  call  it.    It  removes  that  stereotyped 

interest-killing  phrase  from  the  initial  portion  of  the 

body  of  the  letter,  and  yet,  by  its  presence,  assures 
3  19 


MODERN    METHODS    IN    THE    OFFICE 

that  no  confusion  will  result  from  lack  of  data  as  to 
just  what  the  writer  is  talking  about." 

In  concluding  a  letter,  says  an  office  manual,  avoid 
stereotyped  forms: 

Example:    ''Awaiting  your  reply  with  interest." 

Or: 

"Trusting  that  we  shall  be  favored  with  your 
order,"  etc. 

Say,  instead:  ''It  is  not  simply  because  we  want  the 
order  that  we  are  anxious  to  send  you  these  goods. 
That's  one  reason,  of  course;  but  we  want  most  to 
show  you  what  complete  satisfaction  buying  from  us 
really  means.  You  have  our  Style  Book.  Do  not  lose 
this  opportunity." 

Or: 

"The  coat  you  have  asked  about  is  one  of  our  most 
beautiful  models,  and  it  is  one  of  our  best  values,  too. 
You  could  not  make  a  better  selection." 

As  regards  the  physical  appearance  of  letters,  the 
following  pointers  are  valuable: 

Quotations:  When  a  paragraph  is  quoted  in  the 
body  of  the  letter,  both  right  and  left  margins  of  the 
quoted  paragraph  must  be  indented  at  least  five  spaces 
further  than  the  regular  paragraphs. 

Quotations  should  be  single  spaced;  quotation  marks 
should  not  be  placed  before  each  quoted  paragraph, 
but  only  after  the  last. 

When  an  original  letter  is  quoted  in  a  follow-up 

letter,  do  not  inclose  the  quoted  letter  in  quotation 

marks. 

20 


TYPING    AND    CORRESPONDENCE 

Specific  instructions  for  side  margins. 

For  example: 

The  left  margin  is  controlled  by  the  left  marginal 
guide,  which  should  be  set  at  20.  There  is  no  excuse 
for  an  uneven  left  margin. 

The  right  margin  depends  upon  the  words  ending 
the  line.  In  attempting  to  keep  this  margin  even, 
it  is  often  necessary  to  divide  a  word  of  several  sylla- 
bles, placing  the  last  part  on  the  next  line. 

To  further  assist  you  to  keep  this  margin  even,  the 
following  facts  should  be  observed: 

Under  no  circumstances  let  the  line  extend  beyond  83. 
Better  stop  at  76  than  at  85. 

Better  divide  a  word  at  76  (or  up  to  83,  of  course) 
than  to  extend  to  84. 

Place  the  right  margin  guide  at  80;  this  causes  the 
bell  to  ring  at  75. 

If  necessary  to  go  beyond  80  (up  to  83),  press  the 
right  release  key. 

Saving  Typists'  Time 

*'It  is  surprising  how  much  time  is  saved  by  an 
improvement  involving  but  a  fraction  of  a  second  if 
the  process  is  repeated  often  enough,"  remarked  a 
typist. 

"We  do  a  tremendous  amount  of  circularizing  in 
this  office.  Here  is  a  little  device  which  has  proved 
practicable.  Instead  of  inserting  but  one  envelope, 
addressing  it,  and  removing  it,  we  insert  an  envelope 
to  a  point  represented  by  turning  the  platen  six  spaces  ; 

21 


MODERN    METHODS    IN    THE    OFFICE 

then  insert  another,  again  turning  the  platen  six  times, 
and  continue  this  until  the  first  envelope  is  properly 
located  for  addressing. 

"We  then  address  it  with  a  vertical  left-hand  margin 
and  remove  it.  Another  envelope  is  then  inserted,  and 
turning  the  platen  brings  the  second  one  into  position. 
By  repeating  this  process  indefinitely  a  constant  chain 
of  envelopes  passes  through  the  machine.  The  saving 
of  time  comes  in  the  fact  that  the  platen  is  not  turned 
clear  to  the  center  of  the  envelope  for  each  one  ad- 
dressed. Actual  tests  of  the  old  and  improved  methods 
have  demonstrated  that  a  substantial  saving  of  time 
is  effected  by  the  latter  during  a  day's  work." 

Is  Your  Business  Correspondence  Up-to-date? 

"Within  the  past  few  years  I  have  noted  a  great 
change  taking  place  in  business  correspondence,"  re- 
marked an  office  manager.  "Instead  of  feeling  obliged 
to  adopt  a  quasi-legal  phraseology  freely  interspersed 
with  polysyllables,  people  are  beginning  to  write  as 
they  speak — simply,  and  directly  to  the  point. 

"I  ran  across  some  data  bearing  on  the  subject, 
recently,  which  impressed  me  so  favorably  that  I 
embodied  it  in  a  bulletin  to  be  distributed  to  our  cor- 
respondents.   Here  are  some  of  the  items: 

Do  not  say,  "Wc  wish  to  acknowledge  the  receipt  of  your  es- 
teemed communication."  You  should  say,  "We  are  glad  to  receive 
your  letter." 

Do  not  say,  "Wc  trust  the  dress  is  in  your  possession  ere  this." 
You  should  say,  "We  hope  you  have  received  the  dress," 

22 


TYPING    AND    CORRESPONDENCE 


Words,  Expressions,  etc.,  Not  to  Be  Used 
For  example: 

Do  NOT  Say:  Say,  Instead: 

Inclosed  herewith  Inclosed  (simply) 


At  the  present  time.      At  present. 


Two  pair. 


Two  pairs. 


This  quality  goods         This    quality    of 
goods. 


The  demand  for  these  There  has  been  a 
goods  has  been  great-  great  demand  for 
er  than  we  looked  for.    these  goods. 


You  are  due  us  $2,  or  There  is  a  balance  of 

we  are  due  you,  etc.  %2  due  us,  etc. 

Your  favor  (or  com-  Your   letter    (postal 

munication)  has  just  card,  telegram)   has 

reached  us.  just  reached  us. 


We  shall  try  to  always    We  shall  trj'  always 
please  you.  to  please  you. 

23 


Reason: 
Inclosed    can    mean 
ONLY  herewith. 
The    and    time   are 
unnecessary.    Avoid 
unnecessary  words. 
The  plural  of  pair  is 
pairs. 

In  the  first  sentence 
quahty  is  used  as  an 
adjective  when  it 
should  be  a  noun. 
The  first  expression 
would  indicate  that 
we  did  not  expect 
much  of  a  demand, 
and  it  would  not, 
therefore,  be  good 
salesmanship. 
Due  us,  in  this  con- 
nection, is  not  good 
usage. 

Favor  or  communi- 
cation is  not  good. 
Some  j^ears  ago  favor 
impUed  a  delicate 
compliment,  but  it 
has  been  so  constant- 
h''  used  that  this 
meaning  has  been 
lost. 

Avoid  split  infini- 
tives. 


MODERN    METHODS    IN    THE    OFFICE 


You  can  make  no  mis- 
take in  selecting  eith- 
er of  the  three. 

We  aie  anxious  to 
know  if  you  found 
everything  satisfac- 
tory. 

You  have  had  the 
goods  quite  some 
time. 


You  can  make  no 
mistake  in  selecting 
any  one  of  the  tliree. 

We  are  anxious  to 
know  whether  (or 
not)  you  found 
everything  satisfac- 
tory. 

You  have  had  the 
goods  a  considerable 
time. 


Our  goods  are  differ-    Our  goods  are  differ- 
ent than  others.  ent  from  others. 


We  extend  you  our 
apologies. 


We  apologize. 


We  beg  to  acknowl-  We  acknowledge 
edge  receipt  of  your  (with  pleasure)  the 
order,  etc.  receipt  of  your  or- 

der. 


Either  must  not  be 
used  in  referring  to 
more  than  two. 

Do  not  use  if  in  a 
subordinate  clause  in 
the  sense  of  whether. 


Quite  some,  quite  a 
few,  etc.,  are  not  in 
good  usage. 

Avoid  different  than, 
say  different  from. 

Extend  means  to 
stretchout.  It  should 
seldom  be  used  as  a 
sjoionym  of  give. 

Beg  should  never 
be  used  in  this  con- 
nection. 


Just  as    soon    as  we  Just  as  soon  as  we  At  once  is  unneces- 

hear    from    you    we  hear  from  you,   we  sary    with    just    as 

shall  send  your  goods  shall    send    your  soon  as. 

at  once.  goods. 


vice. 


Our  usual  perfect  ser-  Our  usually  perfect 
service,  or,  our  usual, 
perfect  service. 

On  March  28th  we 
wrote  you  that  the 
dress  you  returned 
had  not  been  re- 
ceived. 


24 


On  March  28th  we 
wrote  you  stating  that 
the  dress  you  returned 
has  not  been  received. 


An  adjective  cannot 
modify  another  ad- 
jective. 

Wrong  sequence  of 
tenses.  Do  not  use  a 
present  perfect  tense 
with  a  verb  denoting 
completed  action  in 
past  time. 


TYPING    AND    CORRESPONDENCE 

Cutting  Correspondence  Costs 

"When  I  joined  this  organization  some  months  ago," 
said  an  office  manager,  "sl  force  of  correspondents 
was  employed  chiefly  for  the  purpose  of  acknowl- 
edging receipt  of  orders.  Each  letter  was  personally 
dictated. 

''Upon  going  through  the  files,  I  discovered  sufficient 
similarity  among  the  letters  to  warrant  the  hope  that 
a  plan  of  using  stock  paragraphs  might  be  applied 
which  would  result  in  the  entire  elimination  of  dic- 
tation. 

"It  was  easy  to  divide  the  letters  into  types.  Some 
were  mere  acknowledgments  without  further  comment ; 
others  involved  an  explanation  as  to  why  some  of  the 
shipment  was  omitted;  others  covered  cases  in  which 
none  of  the  goods  required  was  in  stock;  others  dealt 
with  remittances  which  were  more  or  less  than  the 
sum  required. 

"It  was  a  simple  matter  to  prepare  stock  letters  ap- 
plying to  these  instances.  Naturally,  in  the  para- 
graphs referring  to  the  peculiar  factors  involved  in 
the  particular  order  referred  to,  a  space  was  left  for 
the  insertion  of  the  proper  words  or  figures. 

"Now  a  letter  goes  to  the  typist  with  a  slip  attached, 
reading  perhaps  as  follows: 

1  11th 

28 2  boxes,  18  by  24,  dble.    2iid  Am. 

94 
6 

25 


MODERN    METHODS    IN    THE    OFFICE 

"The  typist  thereupon  writes  as  follows: 

Gentlemen-. 

Your  valued  order  of  the  11th  was  received  to-day, 

^^'c  are  shipping  bj^  frciglit  j'our  order  as  requested,  with  the  ex- 
ception of  the  omission  of  2  boxes  of  18  by  24  dble.  2nd  American. 
Our  warehouse  reports  a  shortage  of  this  size  and  we  shall  forward 
this  item  upon  receipt  of  same  from  the  factory,  unless  j'-ou  notify 
us  to  the  contrary. 

Wg  arc  confident  that  the  quality  of  the  shipment  will  please  you 
and  we  hope  that  you  will  call  upon  us  whenever  in  need  of  glass. 

Thanking  you  for  the  order  and  hoping  to  hear  from  you  again 
soon,  we  remain 

Very  truly  yours. 

"The  method  of  procedure  is,  of  course,  self-evident. 
The  typist  referred  to  her  book  of  forms,  selected  para- 
graphs 1,  28,  94,  and  6,  and  that  was  all  that  was 
required. 

"This  plan  permits  us  to  substitute  eight-dollar-a- 
week  typists  for  fourteen-dollar-a-week  stenographers. 
Also  it  has  reduced  our  correspondence  staff  seventy- 
five  per  cent. 

"Now  I  am  evolving  a  plan  whereby  we  can  use 
actual  form  letters  filled  in  where  necessary,  thus  still 
further  reducing  the  labor  of  typing. 

"By  the  use  of  the  original  ribbon  used  in  making 
the  form  letter  and  the  adoption  of  a  method  of  repro- 
duction which  is  far  superior  to  ordinary  duplication 
I  beUeve  that  this  will  prove  to  be  practicable." 

20 


TYPING    AND    CORRESPONDENCE 

For  the  Stenographer 
The  following  is  quoted  from  an  office  manual: 

Inserting  Carbon 
When  inserting  carbon  between  sheets  of  paper,  place  it  half 
an  inch  from  the  top  and  left  side  of  the  sheet  of  paper  so  that 
when  the  letter  has  been  written  you  can  remove  the  carbon  with 
the  right  hand,  holding  paper  with  the  left. 

Erasing 

When  erasing  over  carbon,  take  a  blotter  and  insert  it  under  the 
sheet  on  which  you  are  erasing,  but  over  the  carbon  sheet.  Then 
erase,  and  the  blotter  will  prevent  the  carbon  from  smudging. 
This  also  prevents  the  wearing  out  of  the  carbon  paper  in  spots. 

Use  a  pencil  eraser  first  when  erasing,  and  then  finish  with  a 
typewriter  eraser.  This  makes  a  very  clean  erasure,  for  the  pencil 
eraser  takes  off  the  first  coat  very  neatly. 

Underscoring 
When  underscoring  two  or  more  characters,  always  lock  your 
shift-key.    Then,  wliile  striking  j^oui'  underscore,  run  ribbon  along 
by  turning  the  ribbon-spool  crank. 

Dating 

Change  date  at  given  hours.    For  example: 

The  date  must  be  placed  in  the  upper  right-hand  side  under 
the  heading.  The  month  is  WTitten  in  fidl,  then  the  day,  followed 
by  a  comma,  and  the  year.  Do  not  wTite  "st"  or  "th,"  etc.,  after 
day  of  month.    Do  not  place  a  period  after  the  date. 

On  ordinary  business  stationery,  8}^  by  11  inches,  the  end  of 
the  date-line  is  to  come  as  nearly  as  possible  at  80.  To  accomplish 
this,  the  follo^\^ng  scale  has  been  arranged:  in  the  months  from 
September  to  February  begin  the  date  at  64;  from  March  to 
August  at  67. 

Letters  transcribed  up  to  4  p.m.  are  to  be  given  the  date  of 

27 


MODERN    METHODS    IN    THE    OFFICE 

transcription.    All  letters  transcribed  after  4  p.m.  are  to  be  dated 
the  following  day. 

Letters  returned  for  correction  are  to  be  corrected  the  same  day, 
if  possible. 

Estimating  the  Length  of  a  Letter 

Special  attention  must  be  paid  to  centering  the  letter.  In  every 
instance  the  typewritten  matter  is  to  be  as  nearly  as  possible  in 
the  center  of  the  page — that  is,  the  space  under  the  letter-head  and 
the  space  beneath  the  letter  should  be  approximately  the  same. 

No  positive  rule  can  be  given  with  regard  to  the  point  at  the 
top  of  the  page  at  which  the  address  and  salutation  are  to  be 
placed.    It  is  a  matter  of  careful  jutlgment. 

The  phonograph  slip  that  accompanies  the  cylinder  is  a  guide, 
though  the  dictation  of  different  correspondents  varies  greatlj"- 
in  amount  of  typewritten  matter.  Some  correspondents  speak 
quickly  and  without  hesitation,  so  a  relatively  small  part  of  the 
cylinder  would  be  used.  Hesitation,  corrections,  etc.,  also  take  up 
space.  A  correspondent's  habits  of  dictation  should  be  carefully 
considered  before  beginning  to  type. 

As  a  general  rule,  any  letter  occupying  less  than  five  spaces  on 
the  shp  is  a  "short  letter,"  and  is  placed  well  down  on  the  page. 
A  letter  using  from  six  to  twelve  spaces  is  a  "medium-sized  letter" 
and  is  placed  a  little  higher  on  the  sheet.  Any  letter  covering 
thirteen  to  twenty-five  spaces  is  about  a  "full-page  letter"  and 
starts  well  up  on  the  page.  Any  letter  covering  more  than  twenty- 
five  spaces  on  the  phonograph  slip,  in  all  probability,  requires  two 
sheets. 


A  Simple  Idea  Increases  this  Stenographer's  Speed 

"I  have  substantially  increased  my  speed  in  taking 

dictation,"  said  a  stenographer,  "by  drawing  vertical 

Unes  down  the  center  of  the  pages  of  my  note-book. 

This  means  that  upon  coming  to  the  end  of  a  line  I 

have  less  space  to  cover  to  reach  the  beginning  of  the 

28 


TYPING    AND    CORRESPONDENCE 

next  line.  Of  course  I  cover  as  much  space  in  the 
aggregate,  taking  a  page  as  a  whole,  but  that  is  not 
the  point. 

''The  delay  incident  to  breaks  involved  in  covering 
the  entire  width  of  the  page  in  one  motion  is  obviated 
and  consequently  my  speed  has  shown  a  notable  in- 
crease." 

A  Time-saver  for  Typists 

"Here  is  a  simple  idea  which  has  substantially  in- 
creased my  output,"  said  a  typist,  recently.  "Up  to 
a  short  time  ago,  I  have  always  addressed  the  envelope 
at  the  time  of  writing  a  letter;  this  even  though  I 
had  twenty  or  thirty  letters  to  transcribe. 

"'Why  not  type  the  envelopes  in  succession  either 
before  or  after  the  letters?'  I  reflected,  the  other  day. 
'This  will  save  the  labor  of  readjustment  for  each  en- 
velope.' 

"I  now  pursue  this  plan  with  a  quite  noteworthy 
saving  of  time  and  trouble.  Apphed  to  a  large  office, 
employing  many  typists,  it  should  result  in  a  sub- 
stantial increase  of  output." 

Pointed  Paragraphs  for  Enterprising  Typists 

Frederick  P.  Fish,  who  resigned  a  one-hundred- 
thousand-dollar-a-year  position  as  president  of  the 
American  Telephone  and  Telegraph  Company,  be- 
cause he  could  earn  more  in  private  practice,  believes 
in  giving  credit  where  credit  is  due. 

"It  seems  a  strange  thing  to  say,"  he  once  remarked, 

29 


MODERN    METHODS    IN    THE    OFFICE 

''but  I  sometimes  wonder  if  I  could  hold  tliis  position 
satisfactorily  if  it  were  not  for  my  stenographer. 
She  knows  as  much  as,  or  more,  about  the  routine  and 
detail  of  my  duties  than  I  do;  she  lifts  a  vast  mass 
of  petty  worries  from  my  shoulders.  Were  it  not  for 
her  actual  genius  for  organization  and  her  high  degree 
of  sheer  executive  ability  I  would  have  no  time  for 
the  far-sighted  planning  which  is  the  most  important 
feature  of  ni}^  position." 

Doubtless  there  are  many  big  figures  in  the  business 
world  who  echo  these  sentiments.  An  alert,  con- 
scientious stenographer  is  worth  her  weight  in  type- 
writers.   Here  are  some  pointers  from  one  of  this  sort: 

''My  employer's  time  is  worth  twenty  dollars  an 
hour,"  she  remarked,  "hence  any  device  which  will 
save  his  time  is  valuable.  I  noted  that  in  taking  his 
dictation  much  time  was  consumed  in  obtaining  the 
name  and  address  of  the  person  to  whom  the  letter 
was  going.  This  he  always  dictated  slowly  to  insure 
absolute  accuracy. 

"I  suggested  that  he  eliminate  this  feature;  merely 
give  each  letter  a  number  in  the  order  of  its  delivery, 
and  that  I  affix  the  name  and  address  through  reference 
either  to  the  letter  he  answered  or  to  the  office  files. 
By  pursuing  this  policy  a  substantial  saving  of  high- 
priced  time  is  effected. 

"Here  is  another  valuable  wrinkle  which  I  have 

found  saves  time  and  also  improves  the  appearance  of 

my  letters.     Often  when  typing  a  sheet  I  continued 

the  text  to  a  point  too  close  to  the  lower  margin. 

Lacking  a  gauge,  this  is  hkely  to  occur.     By  cutting 

80 


TYPING    AND    CORRESPONDENCE 

a  little  rectangular  hole  near  the  lower  edge  of  the 
carbon  sheet  I  am  warned  of  my  approach  to  the  proper 
point  for  ceasing  typing.  The  hole  shows  thi-ough  the  top 
sheet  as  a  light  spot,  thus  acting  as  an  effective  gauge. 
''Finally,  I  have  discovered  a  simple  method  of 
avoiding  lost  time  and  poor  workmanship  in  cases 
where  letters  with  their  carbon  copies  must  be  removed 
from  the  machine  before  the  sheet  is  completed.  Often 
this  occurs  when  a  hurry-up  job  intervenes.  To  insure 
a  certainty  of  a  proper  registration  upon  reinsertion, 
I  fasten  the  top,  carbon,  and  under  sheets  tightly  to- 
gether with  clips  before  removal  from  the  carriage. 
This  holds  them  securely  in  the  proper  relative  posi- 
tion, so  that  upon  being  reinserted  I  can  continue  my 
work  from  the  point  I  stopped,  with  no  danger  of 
producing  a  poorly  executed  carbon." 

A  Carbon  Copy  Inclosed  with  the  Original  Letter 

"Time  is  money — most  emphatically  so,"  said  the 
proprietor  of  a  concern  which  does  a  large  export  busi- 
ness. ''And  it  is  to  save  time  that  we  have  our  typists 
make  two  carbons  of  every  outgoing  letter  to  foreign 
parts.  One  carbon  copy  goes  in  our  files ;  the  other,  on 
very  thin  tissue,  bears  the  printed  line,  '  Kindly  return 
this  copy  when  you  answer,'  and  is  inclosed  with  thft 
original  letter. 

"When  the  reply  arrives,  it  is  not  necessary  to  ex- 
pend valuable  time  in  searching  the  files;  the  carbon 
of  the  letter  which  evoked  the  response  is  attached  to 

the  answer. 

31 


MODERN    METHODS    IN    THE    OFFICE 

"We  figure  that  the  saving  of  time  greatly  over- 
balances the  negligible  expense  of  the  extra  stationery 
and  carbon  paper.  As  for  the  typists,  it  is  just  as 
easy  to  make  two  carbons  as  one." 

Envelopes  of  Various  Colors  Serve  to  Simplify  Sorting 

of  Mail 

"Here's  a  time-saving  device  which  we've  recently 
developed,"  remarked  a  banker. 

"You  see  this  stack  of  mail?  Note  the  half-dozen 
different  colors  used  for  the  envelopes.  Most  of  our 
mail  comes  in  return  envelopes  supplied  by  us.  When 
we  used  white  envelopes  only,  much  time  was  required 
to  sort  the  mail.  Now  we  use  a  different  color  for 
each  department.  Deposits,  transits,  collections, 
credit  inquiries,  etc.,  each  has  its  own  distinctive  color. 
A  glance  now  serves  to  sort  the  mail.  The  saving  of 
the  cashier's  time  by  this  scheme  amounts  to  a  good 
many  dollars  in  the  course  of  a  year." 

Efficiency  Principles  Eliminate  Ten  Typists 

"Much  that  I  have  accomplished  here  is  of  interest 
only  to  similar  large  establishments,"  remarked  an 
efficiency  engineer  whose  reforms  have  effected  a 
saving  of  nearly  two  hundred  and  fifty  thousand  dol- 
lars per  year  in  a  great  department  store,  "but  here 
is  one  idea  (which,  by  the  way,  I  cannot  claim  to  have 
originated)  that  can  be  almost  universally  applied.  I 
refer  to  the  use  of  stock  paragraphs  in  correspondence. 

32 


TYPING    AND    CORRESPONDENCE 

''In  tackling  our  correspondence  problems,  I  began 
by  making  an  analysis  of  our  outward-bound  letters, 
covering  a  considerable  period.  Practically  every  con- 
tingency arising,  it  developed,  could  be  covered  by  an 
assortment  of  stock  paragraphs  comprising  twelve  be- 
ginnings, twenty-three  endings,  and  forty  short  letters. 
This  list  I  ordered  typed,  mounted  on  large  cardboards, 
and  placed  on  the  desks  of  the  correspondent  and  his 
typists. 

"Thereafter  it  was  a  simple  matter  for  the  dictator 
to  read  the  incoming  mail,  jot  down  the  figures  applying 
to  the  stock  paragraphs  which  would  constitute  the  re- 
ply, and  distribute  the  slips  to  the  girls.  This  idea,  which 
saves  a  vast  amount  of  time,  can  be  applied  in  some 
degree  to  the  correspondence  of  almost  every  office. 

"Another  time-saving  device  in  letter- writing  is  to 
utihze  form  letters  with  a  space  left  at  the  end  of  the 
lines  to  be  filled  in  with  the  words  which  will  make  that 
letter  directly  applicable  to  the  case  of  the  recipient. 
These  two  simple  measures,  combined  with  a  carefully 
studied  and  uniform  arrangement  of  stationery  in  the 
desk  drawers,  thus  eliminating  all  false  motions,  have 
resulted  in  the  release  of  ten  typists. 

"This  means  a  cash  saving  of  nearly  four  thousand 
dollars  a  year;  not  just  this  year,  remember,  but  for 
years  to  come.  There  is  no  reason  why  these  methods 
should  not  be  applied  to  thousands  of  offices,  even  down 
to  the  smallest.  For  even  though  a  man  employ  but 
one  typist,  to  reduce  unnecessary  labor  in  letter- 
writing  will  allow  her  time  for  other  duties." 


II 

PROBLEMS  OF  PERSONNEL 

Efficiency  in  the  Office 

''Wlien  I  tackled  the  problem  of  increasing  the  effi- 
ciency of  our  employees,"  said  an  office  manager  who 
is  in  charge  of  a  staff  of  several  hundred  typists,  ''I 
realized  that  the  point  at  which  I  could  make  the  easiest 
and  most  spectacular  showing  would  be  that  of  selec- 
tion. 

" 'Start  with  good  timber  in  the  first  place,'  I  argued, 
*and  you'll  have  a  tremendous  initial  advantage.' 

"My  first  move,  therefore,  was  to  formulate  a  series 
of  preliminary  tests  to  which  applicants  for  positions 
were  subjected.    Here  is  the  method  pursued  at  present. 

"First,  I  interview  the  girls,  select  those  who  appear 
to  give  promise,  and  to  this  group,  which  comprises 
but  about  fifteen  per  cent,  of  the  total  number  of  ap- 
plicants, I  offer  the  opportunity  of  taking  the  exami- 
nation. About  forty  per  cent.  pass.  Naturally,  these 
tests  vary  with  the  nature  of  the  work  required.  But 
all  are  set  certain  definite,  concrete  tasks  to  be  accom- 
plished within  a  certain  time  limit.  Those  who  suc- 
cessfully survive  this  ordeal  are  then  told  that  they 

34 


PROBLEMS   OF    PERSONNEL 

will  be  notified  when  needed,  unless,  as  often  occurs, 
their  services  are  immediately  required. 

''This  plan,  as  you  can  see,  was  calculated  to  insure 
a  supply  of  eager,  alert,  efficient  workers — a  sort  of 
picked  squad.  A  big  percentage  of  what  I  have  ac- 
complished here  is  traceable  to  that  start. 

''Upon  being  put  on  the  pay-roll  the  new  employee 
reports  to  the  Educational  Department.  Here  a  text- 
book, giving  full  details  of  the  work  she  will  be  called 
upon  to  do,  is  closely  studied.  This  book  contains  a 
description  of  the  one  best  and  standardized  method 
of  performing  every  one  of  the  several  hundred  opera- 
tions which  the  girl  w411  be  called  upon  to  master. 

"She  practises  these  operations  until  all  false  motions 
are  eliminated.  In  this  school  work  the  employee  is 
also  subjected  to  additional  and  more  severe  tests 
calculated  to  demonstrate  her  accuracy,  speed,  rapidity 
of  perception,  etc. 

"These  are  based  upon  tests  similar  to  those  com- 
piled by  Professor  Walter  Dill  Scott,  of  Northwestern 
University.  Some  girls  fail  to  measure  up  to  our  high 
standards  and  are  rejected  at  this  point.  This,  briefly, 
covers  the  second  feature  of  my  sj^stem.  The  first 
is  rigid  selection;   the  second,  proper  instruction. 

"After  completing  her  course  of  training — which,  by 
the  way,  is  spent  principally  in  actual  productive  labor 
— the  new  employee  graduates  to  her  regular  job  in  the 
department  to  which  she  has  been  assigned. 

"She  receives  a  weekly  wage  based  upon  her  pro- 
duction in  relation  to  what  constitutes  a  standard  day's 
work.    A  careful  study  of  what  can  be  reasonably  ac- 

4  35 


MODERN    METHODS    IN    THE    OFFICE 

complished  has  supplied  us  with  the  data  for  this  esti- 
mate. For  instance,  an  eleven-dollar-a-week  operator 
is  expected  to  produce  one  hundred  square  inches  of 
tjT)ewritten  matter  hourly,  allowing  for  time  spent  in 
taking  dictation,  etc.  If  a  girl  exceeds  this  she  receives 
a  bonus,  and  if  she  exceeds  it  consistently,  she  auto- 
matically raises  her  weekly  wage.  Certain  standardized 
penalties  are  exacted  for  errors. 

"So  this  gives  you  the  third  item  in  my  plan  for  in- 
creasing the  efficiency  of  our  staff.  First  came  selec- 
tion; second,  instruction;  and,  third,  a  bonus  system 
of  payment. 

"Naturally,  you're  interested  in  knowing  what  has 
been  the  result.  Salaries  have  increased  from  an  aver- 
age of  nine  dollars  to  that  of  eleven  per  week.  Labor 
costs,  figured  in  relation  to  the  actual  labor  product, 
have  decreased  almost  seventy  per  cent.  In  other 
words,  the  girls  produce  more,  earn  more,  and  we  re- 
ceive more.  As  to  which  of  the  three  factors  I  have 
named  plays  the  biggest  part  in  the  result  I  don't 
know." 

Quantitative  Tests  for  the  Selection  of  Employees. — I 

In  an  article  which  recently  appeared  in  the  Annals 
of  the  American  Academy  of  Political  and  Social  Science, 
Professor  Walter  Dill  Scott  criticized  the  ordinary  hap- 
hazard method  of  selecting  employees,  and  submitted 
a  series  of  tests  as  tending  to  weed  out  the  incompetent 
and,   by  a  process  of  elimination,   enable  only  the 

fittest  to  survive. 

36 


PROBLEMS    OF    PERSONNEL 

Professor  Scott  writes: 

Historically,  it  has  been  the  practice  of  many  commercial  and 
industrial  organizations  to  recuperate  their  forces  of  emploj'-ees  by 
the  emplojTnent  of  j'oung  boj^s  and  girls  as  helpers  for  menial  ser- 
vice. The  wages  paid  these  employees  were  small,  and  no  careful 
selection  was  deemed  essential.  These  helpers  were  given  no  sys- 
tematic instruction.  There  was  no  plan  in  routing  them  from  one 
position  to  another  in  order  that  they  might  learn  the  whole  or 
any  significant  part  of  the  business.  Promotion  from  the  ranks 
was  insisted  upon  in  many  instances,  even  though  no  attention 
was  given  to  preparation  for  such  promotions.  The  children  who 
accepted  such  positions  were  frequently  those  who  had  already 
failed  in  school.  Their  failures  were  mainly  due  to  lack  of  interest 
in  school  work,  and  this  lack  of  interest  could  usually  be  traced 
to  a  lack  of  native  intellectual  abiht3^  The  ranks  were  therefore 
filled  by  many  who  had  already  prove  themselves  to  be  incom- 
petents. No  attempt  was  made  to  make  the  most  of  this  defective 
native  abihty,  and  yet  the  executive  assumed  that  the  higher 
positions  must  be  filled  by  recruits  from  this  untrained  group  of 
intellectual  weakUngs.  This  absurd  method  of  selection  is  still 
in  existence  in  many  firms. 

The  weak  spot  in  this  argument  is  the  fact  that 
most  pedagogues  reaHze  that  the  professor's  claim  that 
''this  lack  of  interest  in  school  work  could  usually 
be  traced  to  a  lack  of  native  intellectual  ability"  does 
not  stand  up  under  the  test  of  empirical  evidence. 

A  high-school  teacher  of  over  forty  years'  experience 
once  told  the  writer  that  her  observation  of  the  careers 
of  former  pupils  had  convinced  her  that  there  was  no 
relation  between  high  records  in  school  work  and  later 
success  in  business.  Many  people  think  that  the  cur- 
ricula of  our  schools  are  so  detached  from  the  needs 

37 

':!  "i  0  5  O 


MODERN    METHODS    IN    THE    OFFICE 

of  every-day  life  that  a  really  intelligent  child  who 
possessed  any  power  of  original  thought  would  not 
be  inclined  to  take  his  school  work  seriously. 

Furthermore,  so  many  factors  other  than  sheer  in- 
teUigence  enter  into  business  success,  that  one  would 
hardly  seem  justified  in  rejecting  all  but  the  young- 
sters with  good  school  records.  Such  qualities  as  initi- 
ative, perseverance,  nerve,  and  willingness  to  assume 
responsibility  are  not  registered  on  school-report  cards. 

Professor  Scott  then  takes  up  the  question  of  pre- 
vious records.    He  writes  as  follows: 

One  factor  frequently  recognized  in  the  selection  of  employees 
is  that  of  the  Previous  Record,  but,  unfortunately,  this  very  im- 
portant factor  is  frequently  regarded  as  useless  because  of  the  im- 
possibihty  of  securing  trustwortliy  and  usable  information  from 
previous  employers.  In  attempting  to  secure  more  trustworthy 
and  usable  information  the  follo\\ing  blank  has  been  devised  and 
used  successfully: 

Blank  1 

1918 


Dear  Sir: 

Mr of  

has  applied  to  us  for  a  position  as  salesman  and  given  you  as 

reference.    He  states  that  he  was  employed  by  j^ou  as 

for  a  period  Will  j^ou  please  advise 

whether  this  information  is  correct?    Why  did  the  apphcant  leave 
your  employment? 

38 


PROBLEMS    OF    PERSONNEL 

Please  place  a  check-mark  in  the  space  below  that  indicates 
the  character  of  his  service: 

Unsatis- 

Good  Fair             factory 

Work (     )  (     )                (     ) 

Conduct (     )  (     )                (     ) 

Abihty (     )  (     )                (     ) 

Character     ....()  (     )                (     ) 

Would  you  be  willing  to  re-employ  him? 

Would  you  recommend  him  for  the  position  applied  for? 

Out  of  ten  men  filling  the  position  which  the  applicant  held  with 

you,  what  would  be  his  comparative  rank? (If  he  would 

be  the  best,  please  mark  his  rank  1;  if  the  poorest,  please  mark 
liis  rank  10;  this  estimate  is,  of  course,  only  an  approximation, 
but  we  wiU  greatly  appreciate  your  best  judgment  in  the  matter.) 

Sincerely  youi's, 


This  blank  does  not  encourage  the  former  employer  to  use 
general  and  meaningless  expressions,  but  whatever  he  says  may 
be  readily  used  in  quantitative  determinations.  Unfortunately, 
a  great  flexibility  seems  necessary  in  the  use  of  the  blank,  but  where 
possible  a  demand  is  made  that  tliis  blank  should  be  filled  out 
in  full  by  the  last  three  employers,  if  the  apphcant  has  had  that 
many.  With  these  blanks  before  him  the  emplojonent  manager 
can  change  the  data  to  a  percentage  basis.  For  instance:  if  all 
the  pre\dous  emploj^ers  fill  in  all  the  blanks  under  "Good"  and 
put  a  (1)  in  the  last  paragraph,  the  apphcant  is  then  given  100  per 
cent,  on  Previous  Record.  Corresponding  percentages  are  given 
for  all  the  various  combinations  found  in  the  blank. 

This  would  seem  to  be  a  great  improvement  on  the 
usual  methods.  But  the  inherent  weakness  of  judging 
by  previous  records  is,  of  course,  still  present.  That 
"it's  a  difference  of  opinion  which  makes  betting  on 

39 


MODERN    METHODS    IN    THE    OFFICE 

horse-races"  applies  even  more  strongly  to  this  matter 
of  personal  estimates  of  individuals. 

The  professor  then  discusses  the  question  of  native 
intellectual  ability  and  says: 

The  Native  Intellectual  Ability  of  the  applicant  is  determined 
by  means  of  a  series  of  mental  tests  which  test,  not  the  learning, 
but  the  native  ability.  The  series  of  tests  employed  are  adjusted 
to  the  general  type  of  applicants  and  the  nature  of  the  service  to 
be  rendered.  For  some  positions  emphasis  is  placed  on  inventive 
abihty,  for  others  on  initiative,  for  others  on  quickness  of  thought, 
etc.  The  applicant  is  then  graded  by  a  percentage  figure  indicating 
the  native  ability  in  each  of  the  qualities  under  consideration, 
as  well  as  by  a  single  figure  to  express  the  entire  native  intellectual 
ability  so  far  as  tested.  The  blank  here  reproduced  is  one  that  has 
been  used  with  good  success  in  testing  salesmen  for  several  or- 
ganizations. 

Lack  of  space  prevents  the  reproduction  of  Pro- 
fessor Scott's  entire  series  of  tests  for  salesmen.  We 
reproduce  a  sufficient  quantity  to  enable  the  reader  to 
comprehend  their  nature. 

The  professor  says: 

The  apphcant  is  given  100  per  cent,  in  speed  if  he  completes  the 
blank  in  ten  minutes,  0  per  cent,  if  he  completes  it  in  sixty  minutes, 
50  per  cent,  if  he  completes  it  in  thirty-five  minutes,  etc.  He  is 
given  a  grade  of  100  per  cent,  in  accuracy  if  he  makes  no  errors. 
Correspondingly  lower  grades  are  given  for  various  mistakes  or 
numbers  of  mistakes.  No  attempt  has  been  made  to  determine 
definitely  the  particular  mental  ability  tested  by  this  blank.  Al- 
though its  use  has  been  discontinued  because  of  improved  sub- 
stitutes, it  might  well  be  given  as  a  fair  sample.  It  was  never 
given  except  as  one  of  a  series  of  tests,  as  no  adequate  conclusion 

can  be  based  on  the  findings  of  a  single  test. 

40 


PROBLEMS    OF    PERSONNEL 

Instructions  for  Tests  2,  3,  and  4 
After  each  word  printed  below  you  are  to  write  some  word, 
according  to  the  further  directions.    Write  plainly  but  as  quickly 
as  you  can.    If  you  cannot  think  of  the  right  word  in  about  three 
seconds,  go  ahead  to  the  next. 

2.  Write  the  opposites  of  the  words  in  this  column,  as  shown  in 
the  first  three. 

good  —  bad 
day  —  night 
up  —  down 
long  — 
soft  — 
white  — 

3.  Write  words  that  fit  the  words  in  this  column,  in  the  way 
shown  in  the  first  three. 

drink  —  water 
ask  —  questions 
substract  —  numbers 
sing  — 
build  — 
wear  — 

4.  Write  words  that  tell  what  sort  of  a  thing  each  thing  named 
is,  as  shown  in  the  first  three. 

lily  —  flower 

blue  —  color 

diamond  —  jewel 

oak  — 

measles  — 

July — 

(A  total  of  ten  words  was  included  in  each  of  the  above  tests.) 

5.  Add  17  to  each  of  these  numbers.    Write  the  answers  as  shown 
in  the  first  three. 

29    46  64 

18    35  49 

60    77  62 

(A  total  of  twenty  numbers  was  included  in  the  above.) 

41 


MODERN    METHODS    IN    THE    OFFICE 

6.  Get  the  answers  to  these  problems  as  quickly  as  you  can. 

1.  What  number  minus  16  equals  20? 

2.  A  man  spent  M  of  liis  money  and  had  $8  left.  IIow  much 
had  he  at  first? 

3.  At  15  cents  a  yard,  how  much  will  7  feet  of  cloth  cost? 

4.  A  man  bought  land  for  $100.  He  sold  it  for  $120,  gaining 
S5  an  acre.    How  many  acres  were  there? 

5.  If  ^  of  a  gallon  of  oil  costs  9  cents,  what  will  7  gallons  cost? 

6.  Write  opposites  for  this  column,  as  shown  in  the  first  three. 
If  you  cannot  think  of  the  right  word  iu  about  ten  seconds,  go 
ahead  to  the  next. 

bravery  —  cowardice 

friend  —  enemy 

true  —  false 

serious  — 

grand  — 

to  win  — 

(Twenty  words  were  included  in  this  tost  as  well  as  in  Test  8.) 

8.  Write  in  each  line  a  fourth  word  that  fits  the  tliird  word  in 
that  hue  in  the  way  that  the  second  word  fits  the  first,  as  shown  in 
the  first  three  lines.  If  you  cannot  tlfink  of  the  right  word  in  about 
ten  seconds,  go  ahead. 

color  —  red;  name  —  John 

page  —  book;  handle  —  knife 

fire  —  burn;  soldiers  —  fight 

eye  —  see;  ear  — 

Monday  —  Tuesday;     April  — 

do  —  did;  see  — 

Nos.  9  and  10  consist  of  two  additional  questions 
designed  apparently  to  test  rapidity  of  perception  and 
accuracy. 

The  writer  doubts  if  the  findings  from  a  test  of 
this  character  have  much  bearing  upon  a  salesman's 
fitness  for  his  job.  One  wonders  if  Professor  Scott 
has  ever  sold  goods.     Later  in  his  article,   the  pro- 

42 


PROBLEMS    OF    PERSONNEL 

fessor  reproduces  a  blank  ''devised  for  and  used  by 
our  organization,  having  a  large  amount  of  statistical 
work  of  the  general  type  here  indicated." 

Unquestionably,  written  tests  for  a  position  of  this 
character  serve  their  purpose.  The  limitations  of  the 
job  are  so  narrow  that  it  is  easy  to  determine  an  ap- 
phcant's  fitness.  Similarly,  if  one  is  hiring  a  stenog- 
rapher, it  is  a  simple  matter  to  test  the  candidate's 
speed  and  accuracy.  But  salesmanship !  that's  another 
story.  Too  many  factors  which  cannot  be  determined 
by  any  written  tests  enter  into  a  salesman's  success 
to  render  examinations  of  this  typ^  of  value. 

Assuming  that  a  man  is  of  good  intelligence,  that 
his  personality  is  inoffensive,  that  he  is  moderately 
fluent  and  has  a  good  presence,  it  is  the  writer's  opinion 
that  the  chief  assets  of  a  salesman  are  a  cheerful  disposi- 
tion coupled  with  dogged  perseverance.  In  other  words, 
character  and  temperament  are  the  two  vital  factors. 

Any  man  can  deliver  his  canvass  with  a  smile  at 
9  A.M.  But  the  man  who  can  put  the  same  vigor  into 
his  canvass  at  4  p.m.  after  a  day  of  turndowns  is  a 
salesman.    Written  tests  fail  to  display  these  qualities. 

Past  performance  and  a  trial  on  the  job — those 
would  appear  to  be  the  only  real  tests  of  a  salesman's 
ability.  Professor  Scott  and  other  practical  psycholo- 
gists are  rendering  business  an  inestimable  service  in 
pointing  the  way  to  scientific  selection  of  employees. 
But  it  is  probable  that  the  pedagogues  are  inclined  to 
overestimate  the  range  of  application  of  their  findings. 
Too  many  indeterminable  factors  enter  into  a  great 
many  jobs  to  make  scientific  tests  of  practical  value. 

43 


MODERN    METHODS    IN    THE    OFFICE 

^      ^  Salary  and  Bonus  for  Typists 

''The  best  system  of  pajment  for  ty]3ists," 
said  an  office  manager,  recently,  "is  the 
salary  plus  a  bonus  plan.  If  you  put 
them  entirely  upon  a  piece-work  basis,  the 
temptation  to  sacrifice  everything  to  speed 
and  quantity  is  strong.  On  straight  salary, 
the  incentive  for  consistently  maintained 
volume  is  lacking. 

"We  pay  our  staff  a  certain  stipulated 
minimum  wage,  plus  an  additional  amount 
on  all  work  in  excess  of  a  fixed  standard. 
We  can  do  this  because  so  much  of  our 
work  is  of  a  uniform  nature. 

"In  measuring  work  done,  I  use  a  meas- 
uring-column," and  the  speaker  handed  the 
interviewer  a  cardboard  measuring-column 
like  that  reproduced.  "The  typewriter  peo- 
ple supply  these  rules  free,  but,  of  course, 
you  can  manufacture  one  on  a  machine  in 
a  few  minutes." 


3 

2 

4 

5 

3 

6 

7 

4 

8 

9 

5 

10 

11 

6 

12 

13 

7 

14 

15 

8 

16 

17 

9 

18 

19 

10 

20 

21 

11 

22 

23 

12 

24 

25 

13 

26 

27 

14 

28 

29 

15 

30 

31 

16 

32 

33 

17 

34 

35 

18 

36 

37 

19 

38 

39 

20 

40 

41 

21 

42 

43 

22 

44 

45 

23 

and 

so  on 

up 

to  55 

and  28  re- 

spectively. 

44 


PROBLEMS    OF    PERSONNEL 

How  Good  Management  Stimulates  Employees  to  Their 
Best  Efforts 

"'The  average  female  stenographer  takes  no  interest 
in  her  work;  she  plans  on  leaving  business  life  w^ithin  a 
few  years,  in  order  to  establish  her  own  home;  her 
real  interests  are  entirely  outside  the  office.  What  is 
the  use  of  trying  to  develop  an  able,  enthusiastic  em- 
ployee out  of  such  fundamentally  unpromising  ma- 
terial?'— that's  the  attitude  of  altogether  too  many 
executives,"  remarked  a  particularly  successful  office 
manager.  "For  it's  that  viewpoint  that  spoils  poten- 
tially promising  employees. 

"It  was  when  I  was  but  a  youngster  in  my  early 
twenties  that  I  discovered  the  proper  method  of  stimu- 
lating the  interest  and  initiative  of  a  stenographic 
staff.  I  was  very  ambitious  and  energetic,  and  it  was 
not  long  before  I  found  myseK  appointed  head  of  the 
correspondence  department,  with  a  stenographer,  a 
Miss  Kelly,  assigned  to  my  exclusive  use. 

"Doubtless  I  suffered  considerably  from  sw^elled 
head,  and  there  is  no  question  but  that  I  was  savagely 
intolerant  of  others'  shortcomings.  It  was  not  long 
before  my  stenographer  and  I  were  at  odds.  It  seemed 
to  me  that  she  betrayed  no  interest  in  her  work,  that 
she  made  inexcusable  mistakes  in  transcription,  and 
that,  taking  it  altogether,  she  was  hopelessly  incom- 
petent. The  more  I  criticized  her  efforts  the  worse 
she  became.  I  was  on  the  point  of  transferring  her 
to  another  department  and  trying  another  stenog- 
rapher   when    I    met    the   head    of    the    mail-order 

45 


MODERN    METHODS    IN    THE    OFFICE 

section,  the  division  from  which  Miss  Kelly  had  been 
shifted. 

"'How  do  you  find  Miss  Kelly?'  he  inquired. 

"I  told  him  my  troubles. 

"'The  girl  is  all  right,'  he  asserted.  'You  can't  be 
handhng  her  right.  Get  off  at  my  floor  and  I'll  give 
3^ou  some  tips  about  her.'  He  then  went  on  to  explain 
that  JNIiss  Kelly  possessed  unusual  intelligence  and 
initiative.  'Give  her  some  insight  into  your  job  and 
its  problems,'  he  continued;  'put  some  responsibility 
on  her  shoulders  and  she'll  quickly  respond  to  it. 
Don't  treat  her  as  a  mere  pawn,  a  cog  in  a  machine. 
She's  not  that  type.  Get  her  pulling  with  you  instead 
of  against  you  and  she'll  prove  to  be  a  valuable  lieu- 
tenant.' 

"The  mail-order  man's  words  made  a  deep  impres- 
sion. 

"'Perhaps  the  fault  lies  largely  with  me,'  I  reflected. 
'I'll  try  different  tactics  and  see  how  they  work.' 

"I  had  a  little  heart-to-heart  talk  with  Miss  Kelly 
— told  her  that  I  felt  that  I  had  been  in  some  degree 
at  fault,  and  suggested  that  we  make  a  determined 
effort  to  pull  together.  I  gave  her  enough  information 
about  the  correspondence  to  render  the  letters  of 
some  significance;  delegated  some  of  my  own  minor 
duties  to  her;  in  short,  I  followed  her  previous  em- 
ployer's suggestions. 

"By  the  end  of  a  week  you'd  have  recognized  neither 
Miss  Kelly  nor  her  work.  She  promptly  responded  to 
my  changed  attitude  and  devclojicd  into  a  first-class 
worker. 

46 


PROBLEMS   OF   PERSONNEL 

''Since  that  time  I've  been  in  charge  of  many  hun- 
dreds of  employees.  And  it's  by  applying  the  lesson 
I  then  learned  that  I've  succeeded  in  enlisting  their 
loyalty  and  enthusiasm.  A  certain  degree  of  discipline 
must,  of  course,  be  maintained.  But  the  more  one 
can  lead  rather  than  drive,  the  more  results  he'll  obtain 
from  the  average  office  employee." 

Increasing  tlhe  Efficiency  of  a  Stenographic  Force 

''In  managing  a  force  of  stenographers,"  said  an 
office  manager,  "three  goals  must  be  sought.  So  far 
as  possible,  work  should  be  arranged  and  allotted  (a) 
so  as  to  render  each  executive  satisfactory  service; 
(6)  so  as  to  keep  each  girl  busy  according  to  her  ca- 
pacity; and  (c)  so  as  to  avoid  the  fluctuations  incident 
to  rush  and  slack  periods. 

*'When  I  first  came  into  this  office  I  discovered  that 
a  reorganization  was  necessary.  Five  girls  had  been 
assigned  each  to  the  exclusive  use  of  each  of  five 
executives.  I  soon  noted  that  they  had  only  enough 
work  to  do  to  occupy  about  seventy  per  cent,  of  their 
time.  The  balance  of  the  stenographic  force,  com- 
prising three  who  might  have  been  termed  general- 
utiUty  girls,  were  obviously  overworked.  Not  only 
did  they  take  dictation  from  our  salesmen  in  the 
morning,  but  also  transcribed  to  our  regular  order- 
blanks  all  orders  received. 

"After  some  study  I  made  the  following  changes. 
One  girl  was  selected  as  head  stenographer,  and  the 
others  were  told  to  follow  her  instructions  as  regards 

47 


MODERN    METHODS    IN    THE    OFFICE 

assignments.  Upon  her  shoulders  was  placed  the  re- 
sponsibility of  seeing  that  work  was  evenly  distributed 
among  the  eight  girls,  herself  included. 

''The  stenographic  department  was  given  a  corner 
of  the  office,  the  leader's  desk  facing  the  others.  She 
was  equipped  with  a  desk  'phone  through  which  she 
received  calls  for  her  staff's  services.  The  office-boy 
was  notified  to  follow  her  instructions  as  regards  the 
delivery  of  transcribed  matter. 

"This  plan  equalized  the  burden  of  labor  and  im- 
proved the  quality  of  the  work  of  the  entire  force. 

"Another  radical  improvement  was  the  passing  of  a 
rule  that  any  girl  taking  dictation  should  be  relieved 
at  the  end  of  an  hour's  steady  work.  This  prevented 
notes  from  becoming  cold  before  being  transcribed, 
evened  up  the  work,  eliininated  the  end-of-day  pres- 
sure of  transcription,  and  relieved  the  girls  of  the 
nervous  strain  attendant  upon  hours  of  steady  dic- 
tation. 

"Two  weeks'  trial  of  the  new  plan  demonstrated 
that  six  girls  could  easily  handle  all  the  work,  and  two 
of  the  original  staff  of  eight  were  sent  to  our  ware- 
house, where  vacancies  existed." 

"Most  tj^pists  sit  too  low  in  their  chairs,"  said  an 
expert,  recently.  "The  chair  should  be  at  such  a 
height  that  when  running  the  machine  the  operator's 
forearm  is  level.  By  sitting  in  a  chair  so  low  that  the 
elbow  point  is  below  the  lowest  row  of  keys,  unneces- 
sary effort  is  exerted  in  reaching  up.     After  hours  of 

work,  this  results  in  a  decrease  of  speed. 

48 


PROBLEMS    OF    PERSONNEL 

"The  position  of  one's  hands  is  very  important. 
The  wrist  should  be  flexible,  held  over  the  keys  with 
the  fingers  curved  over,  almost  in  a  quarter  of  a  circle. 

"Another  labor  eliminator  is  to  sit  just  a  shade  to 
the  right  of  the  center,  instead  of  squarely  in  front 
of  the  machine.  The  reason  for  this  is  the  arrange- 
ment of  the  keyboard,  the  keys  of  which  slant  from 
left  to  right — that  is,  L  is  to  the  right  of  O;  0  is  to  the 
right  of  9.  By  sitting  to  the  right,  one's  fingers,  in- 
stead of  having  to  be  constantly  shifted,  have  only  to 
move  straight  up  and  down." 

"In  too  many  offices,"  said  a  typist,  recently,  "dic- 
tation is  delayed  until  late  in  the  day.  This  crowds 
the  heavy  work  of  transcription  into  hours  when  one's 
vitaUty  is  lowest — means  work  done  hastily  and  care- 
lessly— results  in  many  errors.  A  little  forethought 
in  this  regard  on  the  part  of  executives  would  raise 
the  standard  of  the  work  produced." 

An  Equitable  Distribution  of  Work  Means  Contentment 
Among  the  Office  Employees 

"Human  beings  are  not  machines  and  it  is  a  mis- 
take to  act  upon  the  assumption  that  they  are,"  said 
an  office  manager. 

"Theoretically,  for  example,  a  stenographer  sells  so 
many  hours  a  day  of  her  time  for  a  certain  sum,  and 
should  not  be  in  any  degree  interested  in  the  treatment 
accorded  others  of  the  staff.  But  in  actual  practice, 
one  stenographer  is,   naturally,   strongly  inchned   to 

49 


MODERN    METHODS    IN    THE    OFFICE 

compare  her  own  tasks  with  those  of  her  companions. 
To  see  that  a  just  distribution  of  work  is  effected  is 
a  strong  factor  in  maintaining  a  contented  spirit 
among  the  stenographic  corps.  If  one  girl  is  more 
capable  than  the  rest  and  does  more  work,  it  is  well 
to  recognize  this  not  only  by  an  increase  in  pay,  but 
also  to  occasionally  comment  upon  her  exceptional 
efficiency,  taking  care  to  phrase  your  praise  in  a  form 
which  avoids  odious  comparisons.  Otherwise  she  will 
feel  that  she  is  being  imposed  upon,  and  that  attitude 
is  fatal  to  good  work." 

A  Simple  Plan  Which  Changed  the  Mental  Attitude 
of  this  Office  Force 

''To  the  normal  individual,  work  in  reasonable 
amounts  is  as  necessary  as  food  in  maintaining  a 
healthy  and  happy  frame  of  mind,"  said  an  executive 
who  is  a  keen  student  of  human  nature.  ''Recreation 
loses  its  zest  unless  indulged  in  sparingly  as  a  change 
from  work. 

"But  for  work  to  exert  its  beneficent  effect  the 
worker  must  feel  that  it  is  of  real  value;  that  he  is 
accomplishing  something  worth  while.  This  is  why 
the  perfunctory  efforts  exerted  in  a  gymnasium  fail 
as  a  substitute  for  useful  labor.  The  constructive  in- 
stinct in  mankind  is  strong;   it  demands  an  outlet. 

"The  evolution  of  modern  industry,  with  its  nec- 
essary division  of  labor,  has,  to  a  great  extent,  made 
many  grades  of  work  seem  detached,  without  connec- 
tion with  any  useful  final  result. 

50 


PROBLEMS    OF    PERSONNEL 

"Hence  many  workers  in  minor  capacities  lack  in- 
terest in  their  labors.  They  cannot  see  that  they 
are  contributing  their  Uttle  part  to  a  big  result.  Con- 
sequently they  work  listlessly,  without  enthusiasm. 

"This  was  a  condition  which  prevailed  in  our  office 
up  to  a  couple  of  years  ago.  The  clerks  worked  with- 
out interest;  errors  were  made;  we  had  a  corps  of 
clock-watchers. 

"After  devoting  some  thought  to  the  problem,  a 
simple  solution  occurred  to  me.  The  members  of 
the  office  force  took  no  interest  in  their  tasks  because 
the  work  seemed  pointless  and  futile.  The  relation 
between  their  labors  and  the  delivery  of  our  finished 
product  from  the  factory  was  not  clearly  apparent. 
Many  of  them  had  never  entered  the  factory. 

"I  at  once  installed  a  system  whereby  the  clerks 
were  conducted  thi'ough  the  plant  in  groups.  They 
followed  the  manufacture  of  our  product  from  the 
raw  material  to  the  finished  article.  And  their  own 
connection  with  all  this  activity  was  made  clear. 

"The  change  in  their  attitudes  was  amazing.  They 
began  to  see  that  they  were  very  useful  cogs  in  the 
great  wheel  of  industry.  They  returned  to  their  desks 
with  a  feeling  that  their  efforts  counted  in  the  great 
scheme  of  things. 

"The  quality  of  their  work  promptly  improved; 
they  ceased  to  watch  the  clock;  they  felt  that,  al- 
though the  niche  they  occupied  might  be  small,  it  was 
indispensable.  A  spirit  of  co-operation  developed.  I 
wonder  that  I  never  realized  the  value  of  this  idea  years 

before." 

5  51 


MODERN    METHODS    IN    THE    OFFICE 

Saving  Time  in  Office  Work 

"Every  effort  is  made  to  conserve  the  time  of  fifty- 
thousand-dollar-a-year  men,"  remarked  the  office  man- 
ager of  a  factory.  ''The  waste  involved  in  permitting 
them  to  spend  even  a  few  minutes  a  day  in  detail  work 
is  so  obvious  that  much  thought  is  devoted  to  methods 
which  will  leave  every  precious  moment  free  for  con- 
structive planning. 

"But  in  thousands  of  offices  much  of  the  time  of 
twenty-dollar-a-week  men  is  spent  in  doing  five-dollar- 
a-week  work.  In  a  large  organization  the  money  value 
of  time  thus  consumed  totals  large  sums  annually. 
We  have  devised  several  methods  of  eliminating  this 
factor  of  waste.  For  example,  when  invoices  of  pur- 
chases arrive,  we  enter  them  in  a  purchase  journal, 
segregated  alphabetically.  From  this  book  postings 
are  made  to  the  purchase  ledger,  to  bills-payable  book, 
and  to  the  distribution  book. 

"By  having  all  invoices  arranged  in  alphabetical 
order  by  a  six-dollar-a-week  boy,  the  clerical  staff,  the 
members  of  which  are  paid  three  or  four  times  as  much, 
are  enabled  to  do  their  posting  very  quickly.  In  post- 
ing to  the  purchase  ledger,  our  force  averages  from 
five  to  six  postings  a  minute. 

"Another  time-saving  plan,  which  at  first  thought 

sounds  Chinese  in  its  apparent  inversion,  is  to  have  the 

bookkeeper  work  from  the  end  of  the  journal  toward 

the  front  instead  of  beginning  where  he  left  off.    This 

means  that  he  works  from  the  back  to  the  front  of  the 

ledger  as  well.     While  he  is  completing  his  pen-work 

52 


PROBLEMS    OF    PERSONNEL 

with  his  right  hand,  his  left  hand  is  finding  the  proper 
page  for  the  next  entry;  a  result  which  would  be  im- 
possible if  the  next  page  desired  were  under  the  one 
upon  which  he  is  at  work.  This  has  resulted  in  in- 
creasing his  efficiency  two  hundred  per  cent." 

Hiring  Help  Scientifically 

'^The  employer  or  employment  manager  who  selects 
human  material  on  any  basis  other  than  that  of  im- 
partial tests  is  not  only  betraying  his  intellectual 
limitations,"  remarked  a  business  man,  ''but  he  will 
soon  fill  the  place  with  types  which  more  or  less  ap- 
proximate his  own,  with  the  final  result  that  the  or- 
ganization will  become  lopsided. 

''Individual  reactions  mean  nothing  whatever  re- 
garding an  applicant's  ability.  Each  of  us  admires 
the  perfection  of  his  own  type.  If  we  select  lieutenants 
on  the  basis  of  what  we  consider  our  knowledge  of 
human  nature  or  our  intuitive  perceptions,  we  are 
merely  indulging  our  prejudices.  And  that  is  the  way 
most  people  are  hired.  The  secret  of  securing  a  job, 
then,  is  to  keep  trying  until  one  finds  an  employer  or 
employment  manager  who  sufficiently  resembles  one's 
own  tjrpe  to  result  in  a  favorable  impression.  What  a 
footless  way  to  conduct  business! 

"Many  years  ago  I  received  a  lesson.  I  was  one 
day  calling  upon  a  friend  who  was  the  vice-president 
of  a  realty  and  home-building  company.  I  was  about 
to  leave  his  office  when  he  remarked: 

'"Won't  you  remain  a  few  minutes?    An  applicant 

53 


MODERN    METHODS    IN    THE    OFFICE 

for  a  position  as  head  of  our  rental  department  is 
waiting  outside.  I'll  have  him  shown  in  for  an  inter- 
view, and  would  be  veiy  grateful  to  have  your  im- 
pressions of  him.' 

"I  agreed  to  the  suggestion  and  was  present  during 
the  half-hour  interview. 

'''Well,  I'd  just  as  soon  have  a  snake  in  the  office,' 
exclaimed  my  friend,  after  the  man's  departure. 

"'My  idea,  exactly,'  I  replied.  'Too  suave  and  oily. 
"Uriah  Keep"  to  the  life.  I  like  a  man  to  be  frank 
and  outspoken,  with  a  sense  of  humor.  That  fellow 
counts  ten  before  he  utters  a  word.  There's  sometliing 
sneaky  about  him.' 

"Two  weeks  later  I  found  the  man  installed  as  head 
of  the  rental  department.  Refusing  to  be  discouraged 
at  the  rejection,  he  had  sought  out  the  president  of  the 
company.  The  latter  had  been  deeply  impressed  by 
what  he  termed  the  man's  'subtle  diplomacy  and 
tactful  courtesy,'  and  had  hired  him  over  his  colleague's 
head. 

"He  turned  out  to  be  a  very  successful  executive 
and  a  valuable  asset  to  the  company.  As  a  matter  of 
fact,  my  friend  and  I  objected  to  the  man  because  he 
differed  from  us.    We  merely  indulged  our  prejudices. 

"Realizing  what  it  is  that  makes  betting  on  horse- 
races, I  now  have  my  organization  operated  on  civil- 
service  fines.  In  so  far  as  is  possible,  the  human 
element  is  eliminated  in  selecting  men  either  for  pro- 
motion or  to  join  us  from  outside  sources.  I  want  the 
one  ablest  man  for  the  jol),  regardless  of  whether  or 

not  he  appeals  to  me  personally. 

54 


PROBLEMS    OF    PERSONNEL 

''One  of  my  leading  executives  is  a  man  with  whom 
I  am  utterly  uncongenial.  He  is  solemn,  pompous, 
lacking  in  humor,  and  a  religious  crank.  But  he 
demonstrated  his  fitness  for  the  job  and  he  got  it. 

''For  the  bigger  jobs  my  men  generally  promote 
themselves  tlirough  performance.  But  in  the  lower 
ranks  we  have  a  system  of  quarterly  written  tests. 
These  serve  to  rivet  attention  upon  particularly  prom- 
ising material,  and  thus  the  men  have  no  chance  to 
cry  favoritism.  Written  tests  also  are  used  in  taking 
on  new  help. 

"The  National  Association  of  Corporation  Schools 
recently  issued  the  findings  resulting  from  a  question- 
naire submitted  to  various  concerns."  The  ratings  in- 
dicate the  relative  importance  of  the  various  qualifi- 
cations in  the  eyes  of  employers: 

Previous  employment,  general 100 

Age 97 

Names  of  employers 97 

Duration  of  employment 94 

Nature  of  work 94 

Married  or  single 92 

Reason  for  leaving 92 

References 92 

Scholastic  education,  general 89 

Drinking 87 

Health,  general 84 

Present  health 84 

Qualification  for  clearly  defined  position 84 

Mental  attitude  toward  advancement 82 

Remuneration  during  previous  emplojanent 79 

Past  health 76 

65 


MODERN    METHODS    IN    THE    OFFICE 

Definite  desires 71 

Natural  aptitude  as  indicated  by  preference  to  various  sub- 
jects studied 66 

Scholastic  standing 60 

Habits,  general 60 

Definite  plan  for  progression 60 

Weight 58 

Ideas  as  to  the  relative  importance  of  money  in  comparison 

^^'ith  other  things 58 

Height 55 

Home  en\'ironment 55 

Parental  supervision 55 

Ultimate  aims 53 

Physical  examination 45 

Smoking 45 

Previous  employment,  how  obtained 39 

Line  of  descent 37 

Working  hours,  previous 37 

Financial  obligations,  general 37 

Reasons  for  debt,  if  any 32 

Church 32 

Societies 32 

Plans  for  meeting  financial  obhgations 29 

Social  standing,  general 29 

Clubs 24 

Progress  made  in  society 21 

Athletic  diversions 21 

Are  You  Mentally  Subnormal? 

''Scientific  selection  of  human  material,  careful  train- 
ing, and  a  proper  system  of  payment — those  are  the 
three  essential  factors  in  the  creation  of  a  competent 
clerical  force,"  said  an  office  manager. 

66 


PROBLEMS    OF    PERSONNEL 

''In  this  connection,  the  work  being  done  under  the 
auspices  of  the  National  Association  Schools  of  Scien- 
tific Business,  of  which  Mr.  Sherwin  Cody,  of  Chicago, 
is  managing  director,  is  of  great  interest.  This  organi- 
zation has  compiled  tests  for  use  in  weeding  out  the 
less  competent  applicants  for  positions,  and  also  has 
evolved  brief  and  practicable  educational  courses  for 
office  help,  designed  to  increase  efficiency  in  spelling, 
simple  arithmetic,  grammar,  punctuation,  touch  type- 
writing, etc. 

*'Not  only  are  the  tests  valuable  in  selecting  fresh 
timber  from  outside  the  office,  but  in  promoting  those 
within  the  ranks  they  serve  to  indicate  the  most 
promising  material. 

''As  Mr.  Cody  truly  states:  'Tests  of  mental  alert- 
ness should  always  be  supplemented  by  tests  of  in- 
dustry, such  as  a  memory  test  (concentrating  for  five 
minutes  on  memorizing  a  given  passage,  then  using 
ten  minutes  to  reproduce  what  is  remembered).  Re- 
sults in  business  have  three  factors:  1.  Mental  alert- 
ness. 2.  Industry.  3.  Time.  Time  and  industry  will 
make  a  small  amount  of  mental  alertness  go  a  long 
way,  and  mental  alertness  lacking  time  and  industry 
will  accomplish  little.' 

"Observation  of  some  thousands  of  tests  given  by 
Mr.  Cody  indicates  that  the  same  test  given  the  same 
persons  at  intervals  of  a  month  will  show  perhaps 
five  per  cent,  of  freakish  variation,  due  to  not  knowing 
just  what  is  requh-ed,  inability  to  get  the  mind  working 
normally  in  the  short  time  allowed,  and  nervousness; 
but  a  series  of  seven  or  eight  tests  extending  over  an 

57 


MODERN    METHODS    IN    THE    OFFICE 

hour  in  every  case  corrected  this  freakishness.  No 
single  tests  could  be  depended  on  to  do  more  than 
eliminate  incompetents;  but  a  series  of  seven  or  eight 
tests,  or  two  or  three  longer  tests,  would  safely  separate 
the  passable  into  three  classes,  the  fair  (or  passable), 
good,  and  excellent.  In  matters  where  judgment  had 
to  be  exercised  in  grading,  agreement  of  graders  could 
not  be  secured  to  a  closer  point  than  a  scale  of  five — 
failure,  poor,  fair,  good,  excellent.  General  judgment 
based  on  such  records  in  ninety-five  per  cent,  of  the 
cases  of  employees  tested  seemed  to  be  verified  by 
employers.  Many  important,  considerations  in  em- 
ploying help  cannot  be  tested  at  all,  and  must  be 
discovered  by  examination  in  person  by  an  employ- 
ment expert.  But  the  clearly  competent  can  be 
separated  from  the  clearly  incompetent  so  far  as 
mental  ability  and  industry  are  concerned;  and  rec- 
ords of  speed  and  accurac}',  and  knowledge  of  the 
fundamentals  of  education,  will  enable  employers 
to  distinguish  as  much  as  first,  second,  and  third 
choice  on  the  operations  actually  to  be  performed 
by  stenographers,  bookkeepers,  office-boys  (funda- 
mentals), general  clerks  (accuracy  in  addressing  and 
fiUng,  etc.),  and  correspondents  (common  sense  and 
tact  in  answering  letters).  Beyond  these  five  classes 
and  the  few  subjects  involved  Mr.  Cody's  experi- 
ments have  not  yet  carried  him.  It  is  believed 
that  the  fundamental  education  tests  are  good  for 
all  classes  where  education  is  a  requirement,  as  in- 
dustrial apprentices,  salespersons,  etc. 

"Here  is  one  of  the  tests: 

68 


PROBLEMS    OF    PERSONNEL 

Fractions  (short  cuts) 

Multiply  mentally  and  write  the  answers  in  pencil  on  this  sheet 
after  the  problems.  If  you  are  unfamiliar  with  short  cuts,  do  the 
best  you  can  in  the  time  allowed.  Accuracy  is  more  important 
than  speed,  but  if  you  finish  in  less  than  the  time  allowed,  note  the 
exact  time.    Decimal  points  essential. 

Time  allowed,  five  minutes. 


Multiply: 

103  at  4  1/4  c 

70  at  57  1/7  c 

34  at  5  1/2  c 

1866  at  66  2/3  c 

6643  at  6  1/4  c 

40  at  37  1/2  c 

72  at  8  1/3  c 

144  at  87  1/2  c 

124  at  12  1/2  c 

112  at  6  2/3C 

99  at  11  1/9  c 

18  at  62  1/2  c 

84  at  14  2/7  c 

32  at  18  3/4  c 

333  at  33  1/3  c 

17  at  42  1/2  c 

"For  this  test,  a  rating  of  30K  represents  the  aver- 
age speed,  with  7  errors ;  and  a  rating  of  65  represents 
the  maximum  speed,  with  4K  errors.  These  ratings 
are  figured,  we  are  told,  as  follows:  answers  to  all  the 
problems  in  column  one  count  as  31,  in  second  column 
also  as  63. 

"  Because  the  range  of  qualifications  for  office  help 
is  comparatively  narrow,  it  would  seem  that  tests  of 
this  sort  would  permit  of  the  selection  of  an  all-star 
aggregation. 

"  Similar  tests  for  outside  salesmen,  which  have  been 
propounded  by  various  educators  and  psychologists, 
seem  to  me  well-nigh  worthless.  Office  employees 
are,  to  a  great  extent,  machines.  The  capacity  of  a 
machine  can  be  accurately  measured.  But  in  branches 
of   endeavor   in  which   initiative  and   ideas  are  de- 

59 


MODERN    METHODS    IN    THE    OFFICE 

manded,  as  in  the  cases  of  salesmen,  executives,  etc., 
there  the  only  safe  test  would  seem  to  be  that  of 
performance." 

A  Concern  with  the  Right  Spirit 

"Some  men  are  interested  in  their  work  both  for 
the  work's  sake  and  for  their  own  sake,"  remarked  an 
executive,  recently,  ''while  with  others  the  work  is 
in  no  degree  an  end  in  itself,  merely  a  means  to  an 
end,  the  latter  being  the  weekly  pay-envelope.  This 
attitude  means  one  of  two  things:  the  job  is  wrong  or 
the  man  is  wrong.  Sometimes  it's  the  first  reason  and 
sometimes  the  second. 

''Often  the  right  man  in  the  wrong  job  appears  to 
be  fundamentally  worthless.  Shifting  him  to  the 
proper  niche  will  cure  the  trouble.  But  for  some  men 
there  is  no  right  niche.  Get  rid  of  them;  that's  my 
policy. 

"When  you  come  in  contact  with  an  establishment 
where  each  man's  eye  is  centered  only  on  his  pay- 
onvelope,  there  you  find  petty  jealousy,  office  poHtics, 
sycophancy,  and  backbiting.  If  you're  working  in 
such  an  atmosphere,  get  out;  that's  my  advice.  Get 
a  job  with  a  competing  concern,  for  sooner  or  later  the 
whole  establishment  will  begin  to  suffer  from  the  in- 
roads of  competitors  who  are  in  a  healthier  condition. 

"WTien  a  younger  man  I  was  employed  by  a  con- 
cern which  at  that  time  was  a  leader  in  its  field.  I 
spent  five  years  in  working  up  to  the  position  of  as- 
sistant office  manager.     Once  ensconced  in  this  job, 

GO 


PROBLEMS    OF    PERSONNEL 

I  promptly  began  to  urge  certain  reforms  about  which 
I  had  read.  I  wanted  our  typists  shifted  to  a  piece- 
work and  bonus  system  of  payment;  demanded  that 
the  entire  wage  scale  be  readjusted  in  accordance  with 
the  actual  productive  power  of  each  individual  typist, 
suggested  that  a  brief  educational  course  be  installed, 
etc.  My  superior  concluded  that  all  this  was  a  re- 
flection upon  his  regime,  this  despite  the  fact  that  I 
sought  to  be  tactful  and  was  willing  that  he  be  credited 
with  all  the  glory. 

''The  measures  I  advocated  were  suppressed,  and 
upon  my  threatening  to  force  the  issue  by  appealing 
to  the  higher-ups,  I  was  summarily  discharged.  'Too 
ambitious,'  was  the  verdict. 

"Naturally,  I  went  directly  to  the  president. 

"'You're  well  out  of  this  place,'  he  informed  me. 
'The  office  manager  is  close  to  heavy  stockholders 
and,  consequently,  my  hands  are  tied.  I  can  place 
you  elsewhere,  however,  and  eventually  you'll  see  that 
your  discharge  is  a  blessing  in  disguise.  This  entire 
estabhshment  is  honeycombed  with  pull,  preference, 
and  politics.  Because  I'm  getting  a  high  salary,  I 
remain,  but  we  cannot  long  compete  with  younger 
competitors  who,  instead  of  discouraging  ambition, 
place  a  premium  upon  it.' 

"True  to  his  word,  the  president  secured  me  an 
opening  with  this  concern,  one  which  is  forging  ahead 
at  the  expense  of  its  moss-grown  rivals.  Here  the  spirit 
is  healthy  and  optimistic.  Every  man  is  interested 
primarily  in  his  work.  There's  an  esprit  de  corps,  a 
sense  of  united  effort,  and  team  play  which  is  inspiring. 

61 


MODERN    METHODS    IN    THE    OFFICE 

''Promotions  are  made  upon  merit.  Pull  and  poli- 
tics play  no  part  in  a  man's  advancement." 

How  to  Hire  Men 

"In  hiring  men,"  said  the  executive  of  a  large  insti- 
tution, ''I  never  look  for  bargains,  because  my  ex- 
perience has  convinced  me  that  they  don't  exist.  By 
bargains  I  mean  hiring  a  forty-dollar-a-week  man  for 
fifteen  dollars  because  hard  luck  has  forced  him  to 
accept  a  fifteen-dollar  job. 

''If  you  haven't  a  forty-dollar-a-week  job  open,  pass 
up  the  applicant.  If  you  don't,  he  w411  remain  with 
you  but  a  short  time;  merely  long  enough  to  enable 
him  to  find  a  job  suited  to  his  capacity.  Or  if  he 
really  intends  to  stay,  he  will  probably  disturb  your 
organization  by  seeking  to  push  himself  up  too  quickly. 
Unjust  as  it  seems,  it  is  bad  policy  to  jump  a  man  from 
a  fifteen-dollar  job  to  a  forty-dollar  one,  even  though 
he  deserves  it.  The  rest  of  your  staff  thinks  that 
favoritism  has  been  exerted  and  is  likely  to  become 
dissatisfied.  This  is  merely  a  general  rule,  you  under- 
stand.   No  doubt  there  are  exceptions. 

"Another  t^-pe  against  which  I'm  on  my  guard  is 
the  clever  floater.  He  is  hard  to  resist,  because  his 
experience  has  equipped  him  to  talk  almost  any  execu- 
tive into  giving  him  a  chance.  Many  of  this  type  are 
very  capable  employees;  they  leave  a  trail  of  regretful 
employers  in  their  wakes.  Their  records  are  clean 
except  for  one  point — they  won't  stick.  It  is  their 
very  abiUty  which  is  their  curse.     They  know  that 

62 


PROBLEMS    OF    PERSONNEL 

they  can  obtain  and  hold  a  job  almost  any  time.  Hence 
their  readiness  to  resign  whenever  a  restless  spell  at- 
tacks them.  Needless  to  say,  they  are  a  poor  invest- 
ment. Shortly  after  they  become  of  real  value  and 
you've  become  accustomed  to  depending  upon  them 
they  leave.  And  that  means  the  trouble  and  expense 
of  breaking  in  another  man. 

''But  there  again  there  are  exceptions.  One  of  our 
high-salaried  executives,  who  has  been  with  us  ten 
years,  had  drifted  from  New  York  to  Hong-Kong 
when  we  hired  him.  But  we  happened  to  get  him  at 
the  psychological  moment  when  he  had  concluded  to 
settle  down.  As  a  general  rule,  steer  clear  of  floaters. 
They're  a  poor  investment. 

"Analysis  of  my  records  shows  that  our  most  satis- 
factory employees  have  been  recruited  from  the  ranks 
of  men  from  twenty  to  twenty-five  years  of  age, 
equipped  with  one  or  two  or  possibly  four  years  of 
high-school  experience. 

"But  with  so  many  more  young  men  of  scanty 
funds  going  through  college,  we  may  find  that  in  the 
future  more  and  more  college  men  will  join  us  and 
make  good." 

Saving  Delivery  Expense 

"You  know  it  developed  at  the  George  Junior  Re- 
public that  even  the  most  incorrigible  boys  promptly 
became  pro-social  and  law-abiding  as  soon  as  they 
were  put  in  possession  of  a  httle  piece  of  land  they 
could  call  their  own,"  remarked  a  laundry  proprietor. 

G3 


MODERN    METHODS    IN    THE    OFFICE 

''That  fact  suggested  a  plan  which  has  worked  well 
in  my  business. 

*'I  used  to  supply  my  men  with  horses  and  wagons. 
The  expense  was  heavy;  the  live  stock  was  handled 
carelessly,  overfed  or  underfed,  overdriven;  my  vet. 
bills  were  very  heavy. 

"Finally  I  concluded  to  sell  my  horses  and  wagons 
to  my  drivers  on  easy  payments.  Now  they  own  them. 
The  wagons  bear  the  name  of  my  establishment,  they 
are  uniformly  painted.  My  collection  and  delivery 
expense  is  less  than  previously — and  my  men  earn 
more.  Why?  Merely  because  they  are  more  care- 
ful of  the  horses  and  wagons.  This  saving  divided 
between  the  men  and  myself  means  more  money  for 
both  parties." 

How  to  Hire  Competent  Employees 

''Daily  I  am  amazed  at  the  haphazard  methods 
used  in  emplo}dng  labor,"  said  the  general  manager  of 
a  large  concern. 

"The  accident  of  mere  acquaintance  has  been  the 
determining  element  in  the  employment  of  many  men 
for  positions  entailing  heavy  responsibilities.  Merely 
that  a  man  may  fill  a  position  satisfactorily  does  not 
mean  that  somewhere  in  this  countiy  of  one  hundred 
million  souls  there  isn't  a  man  who  could  satisfy  its 
demands  far  better. 

"No  matter  how  relatively  unimportant  a  job  may 

be,  I  beheve  in  establishing  contact  with  a  big  field 

of  applicants;  then,  by  a  process  of  eliniination,  finally 

G4 


PROBLEMS    OF    PERSONNEL 

selecting  the  one  best  man.  This  means  that  I  have 
constantly  at  hand  a  good  supply  of  tested  timber  for 
advancement. 

''Whenever  possible  I  avoid  the  fallible  element  of 
personal  impression  by  rigid  competitive  tests.  All 
our  stenographers,  for  example,  have  obtained  their 
positions  by  successfully  passing  written  examina- 
tions which  weeded  out  the  less  efficient  applicants. 

''But  the  nature  of  the  qualities  demanded  in  many 
berths  precludes  the  use  of  such  simple  and  convincing 
methods.  To  obtain  applicants  for  higher  executive 
positions,  I  advertise  in  the  newspapers  and  trade 
media.  As  I  am  inclined  to  believe  that  in  nine  cases 
out  of  ten  a  man  who  can  think  clearly  can  write  clearly, 
I  do  not  hesitate  to  eliminate  perhaps  seventy-five 
per  cent,  or  more  of  the  applicants  by  the  letter  test. 
This  leaves  a  balance  of  twenty-five  per  cent,  either 
to  be  personally  interviewed  or  to  be  requested  to 
write  once  more,  giving  further  particulars. 

"At  the  personal  interview  I  rate  each  applicant 
by  his  past  record  and  experience,  to  be  verified  later; 
his  appearance;  his  ability  as  displayed  by  his  con- 
versation; and  last,  but  doubtless  not  least,  by  the 
impression  which  I  receive  by  my  intuitive  perceptions. 

"I  am  not  infalhble.  I  have  hired  several  false 
alarms.  One  man  who  impressed  me  unfavorably  was 
later  employed  by  a  competitor,  and  now  receives  a 
higher  salary  than  I  do.  An  extremely  nervous  in- 
dividual, he  was  the  type  which  is  unable  to  put  its 
best  foot  foremost  at  a  crucial  moment.  This  mistake 
has  cost  us  a  great  deal  of  money.     But  from  the 

65 


MODERN    METHODS    IN    THE    OFFICE 

experience  I  learned  a  lesson.  Now  I  seldom  make  a 
choice  on  the  first  interview.  I  interview  those  who 
qualify  for  the  final  heat,  to  use  a  sporting  term, 
thi-ee  or  four  times  before  making  an  irrevocable  de- 
cision. Had  I  pursued  this  policy  in  the  case  mentioned, 
the  man  I  rejected  would  have  recovered  from  his 
attack  of  buck  fever  and  I'd  have  discerned  his  real 
merit. 

''The  main  point,  however,  is  to  apply  convincing 
tests  whenever  possible;  in  other  cases  to  pick  your 
man  from  an  abundance  of  material." 

"  An  Executive  Should  Possess  a  Good  Working  Knowl- 
edge of  Psychology,"  says  the  President  of  this  Concern 

"A  theoretic  knowledge  of  human  psychology  is  a 
great  asset  to  an  executive,"  said  the  president  of  one 
of  this  country's  largest  concerns.    "Yet  few  possess  it. 

''In  common  with  most  business  men,  I  held  the 
idea  for  a  great  many  years  that  in  the  event  of  a 
vacancy  in  a  sales  manager's  job  the  best  salesman  was 
the  proper  man  to  take  the  place. 

"Now  I  know  from  experience  that  a  man  may  be 
a  very  good  salesman  and  make  a  very  poor  sales 
manager,  also  that  a  man  may  be  a  mediocre  salesman 
and  an  extremely  efficient  sales  manager.  The  ex- 
ceptional man  may  be  both. 

"This  information,  which  is  worth  a  great  deal  to 
a  man  in  my  position,  was  gained  from  observation 
and  experience.  Had  I  been  grounded  in  psychology, 
I  would  have  learned  it  at  a  much  lower  cost  in  actual 

6G 


PROBLEMS    OF    PERSONNEL 

money.  Here's  how  I  happened  to  acquire  the  in- 
formation. 

''Some  years  ago  it  occurred  to  me  that,  wdth  a  view 
to  increasing  the  value  of  their  services,  some  system 
should  be  developed  for  the  education  of  our  employees. 

"I  began  by  inviting  a  few  of  our  promising  young 
men  to  my  house  one  evening  a  week.  Here  we  dis- 
cussed practical  commercial  problems.  We  surveyed 
the  business  from  several  angles:  production,  sales, 
administration,  etc. 

''The  class  grew  until  I  was  obhged  to  transfer  our 
class-room  to  the  plant.  Our  procedure  was  about  as 
follows:  First  came  a  lecture  from  some  experienced 
member  of  the  staff.  Sometimes  a  successful  sales- 
man talked  on  the  technique  of  salesmanship;  or  the 
office  manager  told  his  storj^,  emphasizing  the  value 
of  accuracy  in  filling  and  receiving  orders.  Again, 
the  credit-man  discussed  the  business  from  his  angle, 
making  a  plea  for  closer  co-operation  from  the  sales  staff. 

"After  this  came  a  fifteen-minute  period  which  we 
called  the  open  forum.  Any  one  was  at  liberty  to 
ask  questions  or  to  propound  suggestions. 

"The  session  wound  up  with  a  written  examination 
covering  the  subject  of  the  evening's  lecture.  Ten 
questions  were  asked;  the  answers  displayed  the 
pupil's  grasp  of  the  subject.  At  the  end  of  the  term, 
a  rating  was  given  each  pupil.  The  leaders  were  con- 
sidered in  line  for  a  promotion  to  a  travehng-salesman's 
position  at  the  first  opportunity. 

"At  the  end  of  our  first  term,  one  young  man  stood 

head  and  shoulders  above  the  rest.    He  was  in  a  class 
6  67 


MODERN    METHODS    IN    THE    OFFICE 

by  himself.  Not  only  did  he  have  a  much  more 
thorough  knowledge  of  the  process  of  production  and 
the  channels  of  distribution,  but  he  was  endowed 
with  remarkable  imagination  and  power  of  initiative. 
'Shepley's  got  everything,'  said  our  vice-president. 
'  He'll  be  a  world-beater.    Let's  put  him  out  on  the  road.' 

*'He  was  a  disappointment  from  the  start.  His 
sales  were  below  the  average  in  volume.  He  simply 
couldn't  put  it  over.  We'd  about  decided  to  send 
him  back  to  the  warehouse  when  a  territorial  manager- 
ship became  vacant.  The  sales  manager  for  the 
Northwest  resigned  to  enter  business  for  himself. 
Just  for  an  experiment,  I  sent  Shepley  up  there.  He 
controlled  a  force  of  five  salesmen. 

''Immediately  he  began  to  devise  schemes  for  sup- 
plying his  men  with  additional  incentive.  He  installed 
a  mailing  system  to  support  their  efforts.  He  developed 
the  idea  of  dealer  co-operation,  then  in  its  infancy,  to 
a  point  far  beyond  our  most  extreme  conceptions. 
Sales  increased  by  leaps  and  bounds.  He  made  good 
from  the  beginning.  To-day,  twelve  years  later,  he 
is  sales  manager  at  headquarters,  with  all  the  district 
managers  subordinate  to  him. 

"The  explanation?  Shepley  is  a  mental  type;  he 
belongs  at  a  desk.  He  is  a  natural  tactician;  a  born 
general.  Most  good  salesmen  are  motive  tj^pes.  They're 
in  their  element  right  on  the  firing-line.  They're  mag- 
netic, good  mixers,  men  of  action.  Shepley  is  a  man 
of  thought.  And  his  particular  brand  of  thought  has 
been  worth  millions  of  dollars  to  this  concern.  And  I 
came  within  an  ace  of  relegating  him  to  the  ware- 

68 


PROBLEMS    OF    PERSONNEL 

house,  where  he'd  have  been  of  httle  value  to  the  or- 
ganization!" 

Reducing  Labor  Turnover  More  than  One-half 

"If  we  could  only  de\'ise  a  method  of  holding  our 
men,"  said  Dalton,  the  general  manager,  ''it  would 
help  some.  The  labor  turnover  in  our  collection  de- 
partment is  terrific.  We  can't  afford  to  pay  any  more 
and  we  can't  afford  to  be  eternally  breaking  in  new 
men.  I  estimate  that  the  average  cost  of  securing  and 
teaching  new  men  on  this  job  is  at  least  sixty  dollars." 

"It's  a  problem,"  conceded  Whiting,  the  branch 
manager,  ''and  I  see  no  solution  for  it.  All  our  com- 
petitors are  confronted  with  the  same  conditions." 

"There's  a  solution  to  everything,"  reflected  Foster, 
the  young  stenographer,  who  overheard  the  conver- 
sation. "I'll  see  if  I  can't  evolve  some  plan  to  settle 
this  diflaculty." 

Three  weeks  later  the  two  executives  were  again  in 
conference.  Foster  sat  at  his  little  desk  near  the 
branch  manager's. 

"I've  been  thinking  about  that  question  of  labor 
turnover,"  he  volunteered,  as  Dalton  arose  to  leave. 
"Why  wouldn't  it  be  a  good  plan  to  pay  the  men  a 
dollar  a  week  less,  giving  them  fifty-two  dollars  in  a 
lump  sum  as  a  bonus  at  the  end  of  each  year's  service? 
Add  to  this  the  sum  forfeited  by  those  who  don't  stick." 

"It  sounds  good,"  agreed  Dalton.  "Try  it  out. 
Whiting,"  he  added,  turning  to  the  branch  manager. 
"Often  the  simplest  ideas  are  the  most  effectual." 

69 


MODERN    METHODS    IN    THE    OFFICE 

Within  six  months  the  labor  turnover  had  been  re- 
duced over  one-half  and  Foster  had  been  called  to  the 
main  office  at  increased  pay,  and  placed  in  a  job  which 
was  directly  in  Une  for  rapid  promotion. 

Test  Yourself  by  this  Standard 

''Here  is  a  blank  application  which  is  used  by  one 
of  the  country's  great  advertising  agencies  for  the 
purpose  of  judging  the  qualifications  of  candidates 
for  emplojTnent,"  remarked  a  business  man. 

"It  struck  me  that  most  of  the  questions  appHed 
equally  well  to  almost  any  line  of  business.  Look  it 
over  and  see  how  you  measure  up.  Note  that  they 
demand  the  information  regarding  your  record  with 
former  employers  four  times,  i.  e.,  from  four  em- 
ployers. 

Have  you  judgment? 

Manual  accuracy? 

Mental  accuracy?  \ 

Clearness  of  expression? 

Patience? 

Perseverance? 

Poise? 

Energy? 

Self-confidence? 

Optimism? 

Are  you  sj^stematic? 

Conscientious? 

Delil:)erate? 

Impulsive? 

What  do  3^ou  lack? 

What  is  your  ambition? 

70 


PROBLEMS    OF    PERSONNEL 

Do  you  do  your  best  work  when  it  is  planned  for  you  or  when 
you  plan  youi-  own  work? 
How  seriously  do  you  take  your  work? 
What  is  your  hobby? 
Does  it  interfere  with  your  business? 

How  do  you  spend  your  leisure  time:  chief  sports  or  amusements? 
Are  you  a  member  of  any  club,  organization,  or  society? 

Former  Etnployers 
Name  and  address. 
What  work  did  you  do? 
What  salary  did  j^ou  receive? 
Why  did  you  leave? 

What  one  thing  do  you  think  you  contributed  while  at  this  work 
which  improved  or  developed  either  it  or  the  method  of  handling  it? 
Of  what  part  of  your  work  are  you  most  proud? 

"Then  comes  a  test  wliich  applies  only  to  the  ad- 
vertising profession. 

Select  from  the  last  issue  of  the  (name  of  well-known  national 
weekly)  what,  in  your  opinion,  are  the  three  best  advertisements. 
Give  your  reasons  for  tliis  selection  in  not  more  than  100  words. 

''This  application-blank  is  supplemented  by  a  per- 
sonal interview  upon  wliich  much  depends." 

"  The  Man,  Not  the  Money,  Is  What  Counts,"  says  this 
Credit-man 

"When  a  man  requests  a  line  of  credit  with  us," 

said   the  credit-man  of  a  big  wholesale   house,   "he 

always  seems  surprised  to  learn  how  comparatively 

little  interest  I  display  in  ascertaining  how  much  he 

has,  and  how  extremely  anxious  I  am  to  discover  how 

much  he  knows. 

71 


MODERN    METHODS    IN    THE   OFFICE 

''My  experience  has  taught  me  that  mere  money 
can  be  easily  lost.  But  ability  and  character — those 
are  stable,  permanent  assets  which  can  create  more 
money. 

"Only  yesterday  I  extended  one  man  a  liberal  line 
of  credit,  despite  the  fact  that  he  had  but  twelve 
hundi'ed  dollars  cash  capital.  And  the  day  before  I 
held  a  man  with  five  thousand  dollars  down  to  terms 
which  were  Httle  better  than  cash. 

"The  first  man  is  twenty-five  years  old,  has  acted  as 
chief  clerk  for  a  store  which  sells  our  line,  is  backed 
by  five  years'  experience,  and  has  saved  his  twelve  hun- 
dred dollars  capital  out  of  his  salary.  I  quizzed  him 
closely  regarding  his  knowledge  of  the  principles  of 
retailing,  and  found  that  he  has  a  very  good  grasp  of 
the  subject.  Reforms  instituted  by  him  largely  ex- 
plain the  success  of  his  present  employer.  Investiga- 
tion of  his  character  references  disclosed  the  fact  that 
his  record  is  clean  and  aboveboard. 

"The  other  man,  who  is  worth  five  thousand  dollars, 
is  a  quite  different  case.  He,  too,  has  worked  as  a 
clerk  for  a  retailer  who  distributes  our  product.  But 
he  could  not  tell  me  of  one  instance  where  he  had  im- 
proved or  developed  the  methods  in  vogue  in  his 
store,  this  despite  the  fact  that  he  has  worked  there 
four  years.  He  displayed  very  little  knowledge  of  the 
fundamental  factors  of  successful  merchandising,  and 
admitted  that  he  had  not  saved  a  dollar  out  of  his 
salary.  It  seems  that  he  recently  inherited  his  five 
thousand  dollars  from  a  maiden  aunt.  I  do  not  ques- 
tion this  man's  honesty;    as  in  the  other  case,  his 

72 


PROBLEMS    OF    PERSONNEL 

character  references  showed  up  well.  Barring  acci- 
dents, the  first  man  will  win  out.  The  chances  are 
all  against  the  second  man.    I  told  him  so  frankly. 

'"If  you  want  to  buy  here,'  I  said,  'we'll  sell  you. 
But  we  can  allow  you  practically  no  credit.  We  must 
have  our  money  within  ten  days  from  date  of  invoice, 
and  at  no  time  can  your  unpaid  bills  total  more  than 
one  hundred  dollars.  I  doubt  if  you  make  good.  But 
if  you  insist  upon  starting  your  own  place,  we  might 
as  well  get  your  money  as  any  one  else.  You'd  do 
better  to  hold  on  to  your  present  job;  put  your  money 
into  first  mortgages  and  delay  your  own  experiment 
until  you've  developed  more.  If,  in  the  course  of  four 
or  five  years,  you  can  work  up  to  be  chief  clerk  of  the 
store  in  which  you're  now  employed,  then  you'll  have 
demonstrated  that  you're  of  the  tunber  to  succeed 
independently.' 

"Well,  he  appreciated  my  frankness,  but  refused  to 
accept  my  advice.  He  placed  an  order  for  a  bill  of 
goods  and  will  open  within  two  weeks. 

"Some  concerns  rate  the  credit  essentials  as  follows: 

1.  Capital. 

2.  Character. 

3.  Abihty. 

4.  Promptness. 

"The  order  in  which  I  place  these  factors  is  as  follows: 
( Character, 
^•(Ability. 

2.  Capital. 

3.  Promptness. 

"With  me  the  man  bulks  larger  than  the  money." 

73 


MODERN    METHODS    IN    THE   OFFICE 

How  Siebolt  Saved  His  Firm  $6,000  a  Year 

*'What  one  thing  do  you  think  you  contributed  while 
at  your  work  which  improved  or  developed  either  it  or 
the  method  of  handling  it?'^ 

Edward  Siebolt  reread  the  phrase.  He  was  glancing 
through  an  apphcation-blank  used  by  a  great  organi- 
zation for  the  pmpose  of  securing  information  by 
which  to  judge  the  quaUfications  of  candidates  for 
positions. 

"Wliat  one  thing  have  /  done  in  my  present  job?" 
reflected  Edward.  "I've  been  here  two  years;  I've 
worked  hard.  But  I  begin  to  see  that  I've  worked 
blindly.  I've  never  displayed  any  initiative.  How 
would  I  show  up  if  asked  to  fill  out  this  blank?  Not 
very  creditably,  I  fear.  If  I  expect  a  raise  January 
first,  I'd  better  do  something  to  deserve  it.  I'll  set 
aside  an  hour  every  evening  in  wliich  to  read  business 
literature." 

It  was  one  afternoon,  a  couple  of  months  later.  A 
temporary  lull  offered  the  young  invoice  clerk  an  op- 
portunity to  approach  the  general  manager. 

"Mr.  Gridley,  I've  been  reading  up  on  modern 
efficiency  methods  lately,  and  I've  gained  some  ideas 
which  could  be  apphed  right  here  in  the  office,"  said 
Edward. 

"Spring  them,"  suggested  Gridley.  "Expenses  are 
steadily  mounting,  and  any  plan  to  save  money  will 
be  welcomed." 

And  Edward  went  on  to  outline  his  proposed  methods. 

74 


PROBLEMS    OF    PERSONNEL 

"Siebolt,  you've  struck  something!"  exclaimed  his 
superior,  at  the  conchision  of  the  young  clerk's  ex- 
planation. "I'll  appoint  a  man  to  relieve  you,  and 
Monday  you  can  start  in  and  see  how  your  plans  work 
out." 

Siebolt  began  by  collecting  a  mass  of  past  corre- 
spondence from  the  files.  This  he  proceeded  to  analyze. 
It  developed  that  practically  all  the  firm's  outward- 
bound  communications  could  be  covered  by  stock 
paragraphs  and  letters.  An  assortment  comprising 
eight  beginnings,  twenty-eight  endings  and  forty-six 
short,  complete  letters  took  care  of  almost  every  pos- 
sible contingency.  Siebolt  had  these  typed,  numbered 
consecutively,  mounted  upon  large  cardboards,  and 
placed,  one  on  the  correspondent's  desk  and  duplicates 
upon  those  of  the  typists.  Previous  to  this  all  letters 
had  been  dictated  into  the  machine. 

''Now  all  you  have  to  do,"  explained  Siebolt,  ''is  to 
read  your  incoming  mail,  pencil  the  numbers  of  the 
paragraphs  on  your  board  comprising  a  reply,  and 
distribute  the  numbered  slips  to  the  girls." 

"Saves  my  time,  the  girls'  time,  and  the  cost  of  the 
records,"  observed  Calkins,  the  correspondent.  "Pretty 
soft.    ^^Tiy  didn't  we  ever  think  of  it?" 

By  the  end  of  a  couple  of  weeks  it  developed  that 
four  of  the  typists  could  be  released  for  duties  in  other 
departments.  The  balance  remaining  could  easily 
handle  the  volume  of  work. 

"This  is  only  a  beginning,"  said  Siebolt.  "My  next 
step  will  be  to  have  typed  form  letters  reproduced 
by  machine  with  spaces  left  at  the  ends  of  the  lines 

75 


MODERN    METHODS    IN    THE    OFFICE 

for  filling  in.  Much  of  our  correspondence  can  be 
thus  handled."  This  proved  to  be  the  case.  Two  more 
girls  were  then  shifted  elsewhere. 

Following  this,  the  young  iconoclast  evolved  a  care- 
fully studied  and  uniform  arrangement  for  the  desk 
drawers.  Specially  constructed  pigeonholes  which 
held  the  letter-heads  at  a  shght  angle,  together  with 
an  arrangement  of  the  envelopes  in  such  a  manner 
that  a  single  motion  of  the  left  hand  sufficed  to  insert 
them  in  the  machine,  effected  a  substantial  saving  of 
time  and  lost  motion. 

"Now  then,"  said  Siebolt,  "here's  another  sugges- 
tion which  will  increase  production.  When  work 
slackens,  instead  of  dividing  the  letters  among  the  en- 
tire force,  thus  inducing  a  general,  though  unconscious, 
lessening  of  speed  throughout,  keep  one,  two,  three, 
or  as  many  girls  as  are  needed,  working  at  normal 
capacity,  and  assign  those  not  required  to  other  tasks. 
Otherwise  the  morale  of  the  whole  force  is,  from  a 
speed  viewpoint,  seriously  damaged." 

These  suggestions,  combined  with  a  bonus  system 
of  payment  which  Siebolt  adopted  from  the  method 
evolved  by  a  great  publishing-house,  resulted  in  so 
increasing  production  that  the  services  of  four  more 
typists  were  dispensed  with  and  they  were  assigned 
to  another  department. 

"Now  then,"  said  Siebolt,  "it's  three  months  from 

the  time  I  started  to  inaugurate  these  ideas.     We're 

turning  out  just  as  much  work  as  we  ever  did,  and 

we're  doing  it  with  ten  less  typists  than  previously." 

"That  means  a  saving  of  over  six  thousand  dollars 

76 


PROBLEMS    OF    PERSONNEL 

per  year,"  said  Gridley.  "Very  good,  Eddie.  You'll 
find  forty  dollars  a  week  additional  in  your  envelope, 
beginning  next  week.  And  we  want  you  to  make  a 
complete  survey  of  the  entire  plant  with  a  view  to 
heading  a  permanent  department  on  costs  and  effi- 
ciency. This  raise  is  just  a  starter.  The  more  we  can 
pay  you,  the  better  satisfied  we'll  be." 

The  Value  of  Personality  in  Business 

"To  achieve  success,"  said  a  prosperous  merchant, 
who  is  noted  for  the  breadth  of  his  interests,  "two 
factors  are  necessary:  first,  a  thorough  knowledge  of 
your  business,  and,  second,  a  complete  understanding 
of  men.  I  don't  know  which  should  be  rated  higher. 
Too  many  people  assume  that  the  first  is  all  that  is 
required.  This  despite  the  fact  that  not  a  day  passes 
that  does  not  witness  the  promotion  of  some  genial, 
courteous  chap  who,  perhaps,  is  not  an  expert  in  his 
line,  over  the  head  of  a  crabbed  crank  who,  by  any 
test  of  sheer  knowledge,  would  easily  defeat  his 
successful  rival. 

"The  ability  to  'get  along  with  people' — what  an 
asset  it  is!  One  of  the  most  conspicuous  successes  of 
our  day,  George  W.  Perkins,  possesses  this  power  to 
an  extreme  degree.  Even  J.  P.  Morgan,  who  was 
not  distinguished  for  his  sweet  disposition,  promptly 
succumbed  to  the  charm  of  Perkins's  personality. 

"Of  course,  personality  alone  will  not  get  you  far. 
But  neither  will  ability.  Personality  coupled  with 
abiUty — there's  an  invincible  combination. 

77 


MODERN    METHODS    IN    THE    OFFICE 

"Have  I  made  it  clear,  I  wonder,  that  I  am  using  the 
word  'personaUty'  as  synonymous  with  'a  complete 
understanding  of  men'?  If  one  grasps  human  nature 
and  is  anxious  to  make  a  favorable  impression,  he  will 
succeed  in  making  his  listener  feel  pleased  with  him- 
seK  and,  at  the  same  time,  will  not  descend  to  crude 
flattery.    That  is  what  people  call  'personality.' 

"Too  often  consciousness  of  ability  is  accompanied 
by  ill-disguised  conceit.  That  is  the  handicap  under 
which  many  competent  men  labor. 

"If  you  want  to  score  a  success,  study  methods; 
you've  got  to  be  able  to  deliver  the  goods.  But  study 
men,  too.  To  find  a  purchaser  of  your  ability  is  often 
as  difficult  as  to  attain  it.  The  man  who  studies  men 
finds  it  easy  to  market  his  brains  at  a  good  price." 

A  College  Education  for  Business  Men 

In  his  speech  on  Accounting  delivered  at  the  Com- 
mercial Education  Congress  at  Washington,  Mr.  John 
Geijsbeek  remarked: 

"The  post-graduate  course  seems  more  adequate  to 
prepare  a  man  for  this  work,  as  only  a  graduate  pos- 
sesses that  knowledge  of  the  world  so  lacking  in  the 
college  man.  As  business  ability  consists  chiefly  in 
grappling  seriously  with  the  daily  problems,  it  is  nec- 
essary that  the  training  in  directing  ability  should 
only  be  given  to  graduates  and  to  undergraduates." 
The  author  does  not  mean  by  this  that  instruction 
should  only  be  given  to  the  college  graduate,  but  desires 
rather  that  the  course  be  one  of  college  education  for 

78 


PROBLEMS    OF    PERSONNEL 

business  men  than  of  business  education  for  college 
men,  and  concludes  by  regretting  the  formalities  re- 
quired of  business  men  who  seek  to  enter  colleges 
after  having  acquired  sound  experience  in  the  world 
of  business  and  practical  affairs. 

"I  think  that  Mr.  Geijsbeek  has  put  his  finger  on 
the  weak  spot  in  our  present  educational  system," 
remarked  a  business  man  in  referring  to  the  above. 

''Some  psychologist  has  remarked  that  we  remember 
only  those  things  in  which  we're  genuinely  interested. 
And  we're  most  deeply  interested,  the  majority  of  us, 
at  least,  in  matters  pertaining  to  our  daily  problems. 
Any  information  which  can  be  promptly  and  prac- 
tically applied  to  questions  which  confront  us  right 
here  and  now  is  swiftly  absorbed. 

''Now  the  average  undergraduate  has  only  a  deriva- 
tive interest  in  his  work.  He  has  been  told  that  it 
will  be  of  value  to  him  later,  but  he  doesn't  realize 
this  from  first-hand  experience.  As  a  result,  it  is  only 
by  an  effort  of  will  that  he  masters  his  lessons.  The 
business  man,  however,  who  has  been  out  in  the  world 
and  who  returns  for  a  post-graduate  course,  attacks 
his  lessons  in  a  very  different  spirit.  He  is  genuinely 
interested.  The  information  which  he  is  absorbing 
becomes  an  integral  part  of  his  experience.  It  is  not 
a  mere  appendage  'learned  and  conned  by  rote.' 

"To  devise  a  method  by  which  the  undergraduate 
can  achieve  this  burning  interest  in  his  work  is  a  prob- 
lem which  confronts  present-day  pedagogy.    The  best 

solution  I  have  yet  seen  is  that  worked  out  by  Dean 

79 


MODERN    METHODS    IN    THE    OFFICE 

Schneider  of  the  University  of  Cincinnati.  Here  the 
students  in  some  courses  devote  part  of  their  time  to 
shop  work  for  wages  in  neighboring  manufacturing 
plants,  and  the  balance  to  class-room  instruction 
which  is  co-ordinated  with  their  practical  labors." 

Wanted — Self-starters 

"Self-starters,  that's  the  type  which  is  hard  to  find 
in  business  life,"  said  a  prominent  merchant.  ''And 
it's  from  their  ranks  that  the  executives  are  re- 
cruited. I  have  hundreds  of  loyal,  efficient  employees 
who  are  filling  their  own  niches  most  satisfactorily. 
But  very  few  of  them  are  prepared  to  step  into  the 
job  next  higher  up. 

"Take  that  man,  for  example."  He  indicated  a  man 
of  perhaps  twenty-seven  or  twenty-eight  years  of  age 
who  was  stationed  at  the  silk  counter.  "From  a 
positive  viewpoint,  he  is  above  criticism.  He  is  alert, 
courteous,  and  a  thorough  salesman.  He  has  gained 
a  strong  local  following.  He  knows  textiles  from  A  to 
Z.  His  sales  total  a  very  satisfactory  volume.  He  is 
an  able  and  valued  employee. 

"But,  negatively,  he  is  open  to  serious  criticism. 
He  lacks  initiative;  he  has  no  knowledge  of  the  funda- 
mentals of  merchandising;  he  has  little,  if  any,  real 
grasp  of  store  or  department  problems;  he  knows 
nothing  of  business  in  a  large  sense.  Ask  him  how 
many  times  his  department's  stock  turned  last  year, 
he  can't  tell  you.  Inquire  as  to  the  sales  expense  in 
his  section  as  compared  with  that  of  other  department 

80 


PROBLEMS    OF    PERSONNEL 

stores,  he  doesn't  know.  Discuss  the  question  of  the 
best  method  of  payment  in  order  to  secure  the  highest 
returns,  he'll  look  blank.  You  see?  What  he  knows 
he  knows  thoroughly.  But  he  lacks  initiative;  he  is 
limited  by  a  certain  narrowness,  a  mental  inertia  which 
prevents  his  grappling  with  questions  which  don't  con- 
front him  daily. 

"We  have  hundreds  of  that  type.  They're  faithful, 
dependable,  loyal.  But  they  never  get  anywhere. 
What  we  and  every  business  organization  need  are 
more  self-starters." 

The  Business  Man  of  the  Future 

"There  is  a  great  deal  of  loose  thinking  displayed 
in  connection  with  the  phrase  'survival  of  the  fittest,'" 
remarked  a  man  who  has  accumulated  a  comfortable 
fortune  through  old-fashioned,  conservative  methods. 
"Types  who  are  fit  in  one  century  may  be  utterly 
unfit  in  the  next.  Men  who  will  score  a  success  in 
the  complex  life  of  the  city  may  prove  utterly  unfit 
when  confronted  with  pioneer  conditions. 

"The  weak  who  seek  to  toady  and  flatter  their  way 
to  influence  may  outstrip  the  strong  who  would  scorn 
to  descend  to  such  methods.  Unless  the  'fittest'  is 
qualified  to  mean  fittest  for  the  particular  environ- 
ment in  which  one  is  placed,  it  means  but  little.  A 
feeble,  dyspeptic  financier  with  a  keen  brain  to-day 
controls  the  destinies  of  thousands  of  strapping  work- 
ers who  could  annihilate  him  with  a  blow.  Tuni  the 
clock  back  a  few  thousand  years  and  you'd  find  to- 

81 


MODERN    METHODS    IN    THE    OFFICE 

day's  master  acting  as  scullion  in  the  kitchen  of  the 
castle  owned  by  to-day's  dock-hand. 

'Tve  a  theory  that  right  now  we're  witnessing  a 
transition  period  in  our  economic  life.  The  type  which 
commanded  success  in  the  nineteenth  century  will,  in 
my  opinion,  find  itself  pushed  to  the  wall  in  tho 
twentieth.  Business,  which  has  been  largely  a  gamble, 
a  speculation,  is  becoming  a  science.  The  successful 
gambler  must  giA^e  way  to  the  trained  specialist,  the 
professional  business  man,  the  business  engineer. 

''Take  my  old  friend,  Fairley.  Thirty  years  ago 
Fairley  was  a  clerk  behind  the  counter.  But  he  had 
ideas,  nerve,  daring,  and  unlimited  initiative.  Through 
a  series  of  successful  plunges  Fairley  accumulated  a 
fortune.  To  him  business  was  an  art;  he  loved  it; 
through  it  he  expressed  himself  and  his  temperament. 
Lately  he  secured  control  of  a  proposition  which  looked 
good  to  him,  embarked  upon  a  tremendous  adver- 
tising campaign,  and  sat  back  waiting  for  the  money 
to  roll  in.  It  didn't  roll  and  Fairley  dropped  a  quarter 
of  a  million  dollars.  Becoming  desperate,  he  called  in 
an  expert  to  analj'^ze  the  situation. 

'''The  principal  difficulty,  Mr.  Fairley,'  was  the 
latter's  verdict,  after  studying  the  records,  'is  the  fact 
that  this  country  under  the  most  favorable  conditions 
could  not  possibly  have  absorbed  enough  of  your  prod- 
uct to  show  you  a  net  profit  on  the  campaign.  You 
over-advertised.  An  analysis  of  the  field  before  a 
dollar  was  spent  would  have  indicated  as  much.  In 
other  words,  the  day  you  decided  upon  the  amount 
you  were  to  spend,  you  lost  two  hundred  and  fifty 

82 


PROBLEMS    OF    PERSONNEL 

thousand  dollars.  You  didn't  have  a  chance  in  the 
world.' 

"The  idea  of  proceeding  in  accord  with  the  modern 
scientific  methods  had  never  occurred  to  Fairley.  He's 
of  the  old  school  which  regards  business  as  a  gamble 
and  which  expects  to  take  a  chance. 

"Men  of  that  sort  cannot  compete  with  the  newer 
type.  They  served  a  useful  purpose  in  then*  day. 
Through  their  nerve  and  enterprise  they  constructed 
the  great  organizations  which  were  later  merged  into 
our  present-day  trusts.  But  the  trusts  have  taken  the 
gamble  out  of  business.  It  is  to-day  a  matter  of  cold- 
blooded efficiency. 

"Be  sure  you're  right,  then  go  ahead,  is  the  attitude 
of  the  man  who  has  achieved  the  scientific  outlook. 
And  before  he  takes  a  step  he  spends  months  in  anal- 
ysis, research,  and  experiment.  How  often  do  you  see 
a  chain  store  close  its  doors?  Mighty  seldom.  And 
the  reason  is  that  weeks  of  study  and  observation 
were  devoted  to  selecting  a  location.  And  once 
opened,  it  is  scientifically,  that  is  to  say,  efficiently, 
conducted. 

"No,  the  reins  will  be  held  by  a  very  different  type 
from  now  on.  Nerve  and  dash  will  give  way  to  knowl- 
edge and  science.  The  dynamic,  energetic  men  wuU 
fall  before  the  quiet,  studious  plodders.  The  scientific 
brain,  with  its  cold,  implacable  insistence  upon  facts, 
will  dominate  the  artistic  temperament  with  its  flashes 
of  inspiration.  Personality,  temperament,  brilliancy 
— all  these  will  acknowledge  sheer  intellect  as  their 

master.    Men's  environment  is  changing  rapidly.    And 
7  83 


MODERN    METHODS    IN    THE    OFFICE 

the  fittest  under  the  new  regime  will  be  the  business 
scientist." 


Character  Analysis  in  Selecting  Employees 

''The  real  point  of  the  controversy  now  raging  re- 
garding selection  of  employees  by  character  analysis," 
said  an  executive,  ''is  not  whether  one's  traits  can  be 
determined  by  his  appearance,  but  rather  whether  this 
information  can  be  practically  applied. 

"Generally  speaking,  we  are  what  we  look — every 
one  knows  that.  No  one  ever  saw  a  man  who  looked 
like  Abraham  Lincoln  or  Daniel  Webster  conducting 
a  peanut-stand.  Or  if  he  did,  he  found  that  the 
person  thus  distinguished  soon  pulled  himself  up  to  a 
higher  level. 

"Every  one  who  is  equipped  with  ordinary  percep- 
tive powers  is  able  to  size  up  his  fellows  with  some 
degree  of  accuracy.  But  the  disciples  of  physiognomy 
and  phrenology  assert  that  they  have  developed  this 
ability  into  a  real  science,  with  the  result  that  they 
can  give  a  complete  and  convincing  analysis  of  the 
subject's  characteristics,  thus  enabling  an  employer 
to  assign  an  applicant  to  the  one  right  job. 

"I  do  not  question  that  a  physiognomist  or  phre- 
nologist can  read  a  subject  more  intelligently  than  can 
one  who  has  never  studied  the  science,  but  I  do  doubt 
whether  their  work  is  of  great  practical  value.  Roughly 
speaking,  I  would  estimate  the  importance  of  the  vari- 
ous factors  entering  into  the  judgment  of  an  appli- 
cant's suitability  about  as  follows: 

84 


PROBLEMS    OF    PERSONNEL 

1.  Past  Record,  30  per  cent. 

2.  Demonstrated  Experience  and  Ability,  40  per  cent. 

3.  Personal  Impression,  20  per  cent. 

4.  Physiognomy  and  Phrenology,  10  per  cent. 
''Items  1  and  2,  which  appear  to  be  synonymous, 

are  differentiated  in  my  mind  by  applying  the  phrase, 
'Past  Record'  to  such  qualities  as  stability,  honesty, 
reputation,  etc.,  and  the  phrase  'Demonstrated  Ex- 
perience and  Ability,'  to  the  educational  advantages 
and  actual  technical  experience  of  the  man.  Number 
3,  Personal  Impression,  applies  to  the  sizing-up  process 
involved  in  any  interview  of  this  nature.  Number  4 
is  self-explanatory. 

"Now,  of  course,  this  estimate  of  the  importance  of 
the  factors  to  be  considered  would  vary  with  different 
jobs.  If  I  were  hiring  a  stenographer,  'Demonstrated 
Experience  and  Ability'  would  figure  much  larger. 
Actual  tests  would  tell  practically  the  whole  story. 
Similarly,  in  employing  a  commercial  artist,  or  copy 
man  in  an  advertising  agency,  the  samples  of  the  work 
submitted  would  be  the  determining  point.  But  in 
securing  an  executive,  a  salesman,  or  a  man  for  any 
position  in  which  it  was  more  difficult  to  ascertain 
the  applicant's  qualifications.  Number  1,  Past  Record, 
and  Number  3,  Personal  Impression,  would,  of  ne- 
cessity, loom  larger. 

"Another  factor  to  be  considered  is  the  man  doing 
the  hiring.  Some  people  are  singularly  obtuse  as 
regards  their  perceptive  faculties.  We  call  them  'poor 
judges  of  character.'  A  man  of  this  type  would  rate 
Number  4  higher  and  Number  3  lower.    Most  people 

85 


MODERN    METHODS    IN    THE    OFFICE 

who  have  investigated  physiognomy  and  phrenology 
have  become  convinced  that  there  is  a  great  deal  in 
them.  But  as  to  the  practicabihty  of  applying  them 
to  the  selection  of  employees,  that  is  another  question. 
Probably  their  most  devoted  adherents  overrate  their 
efficacy — their  bitterest  critics  underrate  their  value." 

To-morrow's   Executives 

'''The  great  trouble  with  the  school  of  experience/ 
Henry  Ford  once  remarked,  'is  that  the  course  is  so 
long  that  the  graduates  are  generally  too  old  to  go  to 
work.'"  It  was  the  general  manager  of  a  great  whole- 
sale house  speaking. 

^'That's  a  point  I  seek  to  impress  upon  the  young 
men  employed  here.  Too  many  of  them  do  the  tasks 
set  for  them  faithfully  and  earnestly,  but  seem  to 
utterly  lack  any  real  grasp  of  the  business.  As  soon 
as  they  walk  out  of  the  door  they  dismiss  their  jobs 
from  their  minds  and  never  think  of  them  until  the 
next  morning. 

"Now  I  want  to  bring  forward  a  squad  of  winners 
here.  I  want  eveiy  youngster  in  the  place  to  make 
good.  Not  merely  because  we  ourselves  will  need 
executives  in  the  future,  but  for  their  own  sakes.  I 
urge  our  employees  to  profit  by  the  other  man's  ex- 
perience. In  other  words,  to  read  and  study  business 
Uterature  outside  their  working  hours.  Between  the 
correspondence  schools,  the  various  night  courses  given 
by  local  institutions,  and  the  vast  volume  of  books 
and  business  magazines,  there  is  little  excuse  for  a 

86 


PROBLEMS    OF    PERSONNEL 

man's  not  gaining  much  of  his  knowledge  via  short-cut 
routes,  nowadays. 

"A  man  who  follows  this  policy  should,  by  the  age 
of  thirty,  be  better  equipped  than  the  'school  of  ex- 
perience '  man  at  fifty.  And  it's  the  man  who  preserves 
the  student's  attitude  toward  business  who  will  hold 
the  big  jobs  in  the  future. 

''My  son  is  taldng  a  course  in  business  at  one  of  the 
great  universities.  Assuming  that  he  possesses  good 
common  sense  and  ordinary  diligence,  this  training 
should  be  worth  ten  years  of  commercial  life.  He'll 
have  that  much  start  on  the  man  who  lacks  that  ad- 
vantage. But  the  omission  of  such  a  course  is  not 
a  fatal  handicap.  Knowledge  gained  by  extra  effort 
generally  sticks.  The  young  fellow  who  gains  his  edu- 
cation in  business  through  evening  study  may  nose 
my  boy  out  at  the  tape. 

"But  somehow,  somewhere,  this  additional  knowl- 
edge, this  power  of  profiting  by  the  other  man's  hard 
knocks,  must  be  acquii-ed.  Otherwise  some  one  pos- 
sessing the  extra  equipment  will  be  sitting  in  a  private 
office,  'in  a  position,'  while  the  chap  who  was  merely 
content  to  do  just  enough  to  hold  his  job  will  be  domg 
just  that — 'holding  a  job.'" 

Keeping  Executives  on  the  Jump 

"There  are  altogether  too  many  executives  who 
make  a  good  showing  for  a  few  months  after  receiving 
their  appointments,"  said  the  president  of  a  great  or- 
ganization,  "and  then  proceed  to  relapse  into  mere 

87 


MODERN    METHODS    IN    THE    OFFICE 

routine  men;  types  who  get  through  their  day's  work 
satisfactorily,  but  who  never  devote  any  real  concen- 
trated thought  to  their  problems  outside  business 
hours. 

"The  human  brain  is  a  strange  instrument.  I  think 
it  was  Emerson  who  remarked  that  we're  all  as  lazy 
as  we  dare  to  be.  Certain  it  is  that  the  vast  majority 
of  people  resent,  and,  if  possible,  evade,  the  effort  re- 
quired to  attack  and  assimilate  new  ideas. 

''Some  time  ago  I  became  conscious  of  a  spirit  of 
loginess  which  seemed  to  be  gradually  pervading  our 
organization.  Production  and  sales  were  increasing, 
to  be  sure,  but  I  had  reason  to  believe  that  those  of 
our  competitors  were  increasing  at  a  proportionately 
greater  speed.  Now  it  is  utterly  impossible  for  me  to 
be  a  specialist  in  every  branch  of  our  business.  That's 
what  I  have  executives  for.  But  because  of  the  loca- 
tion of  my  office,  I  keep  fairly  closely  in  touch  with  the 
office  manager's  problems. 

"I  am  an  omnivorous  reader  of  business  literature. 
I  read  several  business  monthlies  systematically  and 
one  weekly.  In  addition  to  this,  I  have  a  hbrary 
of  over  three  hundred  volumes  on  various  phases  of 
business  which  I  have  read  from  cover  to  cover.  I 
expect  my  executives  to  subscribe  to  and  read  the 
publications  which  apply  to  their  particular  specialty. 

''One  day  I  read  an  account  of  what  had  been 
achieved  in  the  office  of  a  great  publishing-house  by 
careful  selection,  proper  training,  and  piece-work  pay- 
ment of  stenographers.  I  clipped  the  article  and  had 
it  filed  in  my  tickler  to  come  up  for  attention  within 


PROBLEMS    OF    PERSONNEL 

three  weeks.  This  article  appeared  in  a  magazine  to 
which  my  office  manager  subscribed. 

''When  the  article  turned  up,  I  sent  word  to  this 
executive  that  I'd  like  to  see  him. 

'''Have  you  any  ideas  about  increasing  the  efficiency 
of  our  force  of  seventy  typists  and  stenographers?'  I 
inquired. 

"He  confessed  that  he  hadn't.  Couldn't  see  but 
that  everything  was  running  smoothly. 

"'You  can  easily  cut  expenses  sixty  per  cent,  merely 
by  applying  the  principles  explained  herein,'  I  remarked, 
and  handed  him  the  clipping.  '  That's  from  a  magazine 
to  which  you  subscribe.    Better  read  it  more  closely.' 

"Then  I  made  a  tour  of  the  place.  It  seemed  as 
though  in  the  office  of  every  executive  I  saw  stacks  of 
trade  magazines,  most  of  which  had  obviously  never 
been  read.  Some  were  in  the  original  mailing  wrappers. 
The  sales  manager,  the  credit-man,  the  purchasing 
agent,  the  technical  men  out  in  the  plant,  the  adver- 
tising men — everywhere  I  went  I  found  men  hard  at 
work  and  gaining  nothing  new.  They  seemed  like 
squirrels  in  a  cage,  desperately  busy  and  getting  no- 
where. I  verily  beUeve  that  many  of  those  men  knew 
no  more  about  their  work  January  1st,  1918,  than  they 
did  January  1st,  1917. 

"I  went  back  to  my  office,  nonplussed.  Then  I 
called  each  man  into  conference  separately  and  ex- 
plained why  it  was  necessary  for  our  success  for  us  all 
to  keep  right  up  to  the  minute. 

'"I  want  to  see  you  men  grow,'  I  said.  'I  want  you 
to  be  bigger,  broader,  abler  men  every  year.     None 

89 


MODERN    METHODS    IN    THE    OFFICE 

of  us  knows  it  all.  We've  all  got  to  keep  wide  awake 
or  our  competitors  will  beat  us  to  it.  From  now  on, 
every  week,  I'm  going  to  send  each  of  you  a  typed  slip 
giving  the  barest  digest  of  what  new  data  I've  learned 
about  business  during  the  previous  seven  days.  It 
won't  comprise  over  two  hundred  words,  but  it  will 
deal  with  what  I've  gained  from  the  perusal  of  a  good 
many  thousand  words.  And  every  week  I  want  to  receive 
the  same  sort  of  report  from  each  of  you. 

'''This  will  help  us  to  keep  on  the  qui  vive  and  we'll 
adopt  every  new  plan  or  device  for  increasing  produc- 
tion or  sales  and  decreasing  expense  within  seven  days 
after  it  gets  into  print.    Are  you  on?' 

' '  They  were  on.  And  when  I  tell  you  that  that  simple 
device  has  increased  the  net  profits  of  this  concern 
seventy-five  thousand  dollars  annually  already,  I  have 
the  figures  in  black  and  white  to  support  my  assertion — 
I  mean  seventy-five  thousand  dollars  directly  traceable 
to  ideas  thus  acquired.  And  the  plan  has  been  in  op- 
eration less  than  a  year." 

A  Royal  Road  to  Experience 

"When  I  was  a  young  man,"  said  the  elderly  presi- 
dent of  a  great  corporation,  "the  only  way  to  learn  the 
ropes  in  business  was  thi'ough  experience.  It  was  a 
long,  hard,  and  wasteful  method.  Such  a  thing  as 
business  literature,  educational  courses  in  business, 
etc.,  were  unknown.  To-day,  however,  the  young  man 
who  is  ambitious  can  gain  twenty  laps  on  the  field  by 
devoting  his  spare  hours  to  a  study  of  the  literature 

90 


PROBLEMS    OF    PERSONNEL 

pertaining  to  his  subject.  That  there  should  be  any 
who  fail  to  avail  themselves  of  this  opportunity  passes 
my  comprehension. 

''To  illustrate:  The  other  day  in  the  smoking-com- 
partment  of  a  Pullman,  I  fell  into  conversation  with 
a  youngster  in  his  early  twenties.  It  transpired  that 
he  was  an  efficiency  expert  and  that  he  specialized  upon 
department-store  problems.  Claimed  that  he  had  just 
succeeded  in  reducing  the  annual  expenses  of  one 
chent  over  two  hundred  and  fifty  thousand  dollars; 
this  with  no  sacrifice  of  efficiency.  WTiat  this  young 
man's  income  is  I  don't  know,  but,  obviously,  any  one 
who  can  achieve  results  on  that  scale  can  come  pretty 
close  to  naming  his  own  price.  His  clear  and  lucid 
explanation  of  just  what  steps  he  had  taken  to  effect 
these  savings  was  sufficient  evidence  of  the  truth  of 
his  claims. 

"'But  how  in  the  world  did  a  man  your  age  ever 
accumulate  so  vast  a  store  of  information  along  busi- 
ness lines?'  I  inquired,  after  he  had  concluded  his 
narrative. 

"'Some  four  or  five  years  ago  I  went  to  work  for 
a  manufacturing  plant  which  at  that  time  was  being 
subjected  to  a  thorough  overhauling  by  an  efficiency 
expert,'  he  explained.  'That  was  what  started  my 
mind  working  in  that  direction.  The  rest  was  simply 
a  result  of  reading  business  books  and  magazines  dur- 
ing my  spare  moments.  My  ability  is  no  more  than 
average.  But,  undoubtedly,  I  have  more  actual  knowl- 
edge of  business  than  most  men.  Through  reading  I 
have  gained  my  experience  by  proxy.     Now  I'm  be- 

91 


MODERN    METHODS    IN    THE    OFFICE 

ginning  to  cash  in  on  it.  Why,  there  are  enough 
business  books  given  free  of  charge  to-day  to  give  a 
man  a  pretty  good  start.  But  lots  of  young  fellows 
are  too  blamed  lazy  to  read  them  even  under  those 
conditions. 

'''Take  the  Burroughs  Adding  Machine  Company, 
for  instance.  A  post-card  to  them  will  bring  A  Better 
Day^s  Profits  and  Efficient  Cost-keeping,  two  splendid 
books  on  business.  Remington  Typewriter  Company 
give  a  valuable  little  book  called  Cutting  the  Cost  of 
Stenographic  Service.  American  Sales  Book  Company, 
of  Elmira,  New  York,  issue  a  book  entitled  Where 
Have  My  Profits  Gone?  which  is  invaluable  to  the  re- 
tailer. Butler  Brothers,  of  Chicago,  distribute  Success 
in  Retailing  and  The  Butler  Way  System  Book,  two 
works  which  every  retailer  should  possess.  The  Beckett 
Paper  Company,  of  Hamilton,  Ohio,  give  a  book  called 
Principles  and  Practice  of  Direct  Advertising.  The 
American  Multigraph  Sales  Co.,  of  Cleveland,  Ohio, 
issue  several  books  on  direct  advertising.  And  all 
these,  you  understand,  are  free  of  charge. 

"'Then,  of  course,  a  vast  number  of  business  books 
are  for  sale  by  various  publishers  who  specialize  in  this 
field.  By  reading  them  one  gains  in  a  few  hours  the 
combined  experience  of  many  men  for  a  long  period 
of  years. 

"'There  may  be  no  royal  road  to  learning,  but 
systematic  reading  of  business  literature  comes  about 
as  close  to  being  a  royal  road  to  experience  as  any  of 
which  I  can  conceive.  And  experience  applied  is 
quickly  translated  into  money.'" 

92 


PROBLEMS    OF    PERSONNEL 

"  Make  Applicants  for  Credit  Pass  an  Examination," 
says  this  Credit-man 

"  Bradstreet's  organization  attributes  thirty  per  cent, 
of  all  failures  to  incompetence,  and  twenty-nine  per 
cent,  to  lack  of  capital,"  said  the  credit-man  of  a 
wholesale  house.  "But  I  lump  both  these  items  to- 
gether under  the  single  word  incompetence.  This 
gives  us  the  latter  reason  as  the  cause  of  nearly  sixty 
per  cent,  of  failures. 

"Incompetence  is  due  to  lack  of  native  intelligence 
or  lack  of  experience,  or  both.  What  is  the  lesson 
to  the  credit-man  in  these  figures?  Merely  that  he 
should  ascertain  by  a  searching  series  of  questions 
just  what  the  applicant  knows  about  the  conduct  of 
business. 

"An  incompetent  man  will  select  a  poor  location, 
or  will  mark  his  goods  too  high  or  too  low,  or  will 
overstock,  or  will  hire  discourteous  clerks,  or  will 
permit  store  leaks  to  continue  unnoticed. 

"It  is  amazing  how  little  many  small  dealers  know 
about  merchandising.  They  have  no  idea  of  system; 
no  grasp  of  the  significance  of  turnover,  no  ideas  re- 
garding checking  their  cash  against  their  inventory,  no 
real  knowledge  of  their  costs. 

"The  plan  of  subjecting  applicants  for  jobs  to  writ- 
ten examinations  is  being  widely  adopted.  I  would 
not  be  surprised  to  see  the  same  idea  applied  to  appli- 
cants for  credit.  When  a  concern  advances  credit,  it 
is  merely  loaning  so  much  money.  To  demand  that 
the  borrower  demonstrate  his  fitness  to  receive  the 

93 


MODERN    METHODS    IN    THE    OFFICE 

loan  would  seem  to  be  but  reasonable.  I  do  not  claim 
that  this  would,  in  all  cases,  result  in  just  decisions. 
But  I  do  believe  that  it  would  constitute  a  forward 
step  in  securing  accurate  information  upon  which  to 
base  one's  judgment." 

Democracy  in  Management 

''My  conception  of  a  good  executive  is  that  of  a 
man  who,  if  engaged  in  educational  work,  would  make 
an  able  teacher,"  remarked  a  man  who  bears  an 
enviable  record  for  securing  the  support  and  loyalty 
of  his  subordinates.  ''Just  as  our  schools  are  filled 
with  cliildren  who  sit  in  a  state  of  bored  and  apathetic 
stupefaction  while  a  harassed  pedagogue  seeks  to  ham- 
mer home  that  astounding  assortment  of  incongruous 
and  disconnected  data  which  is  called  an  education,  so 
industry  is  manned  largely  by  an  army  of  time-servers 
and  clock-watchers  whose  sole  object  is  how  to  do  as 
little  as  possible  and  get  the  most  for  it. 

"Who  is  to  blame  for  this  condition — the  pupils  or 
the  teachers?  the  workers  or  the  executives?  In  each 
case  I  hold  the  latter  responsible.  Or,  to  be  fair  in 
the  former  instance,  I  hold  the  Boards  of  Education 
responsible. 

"Most  schools  are  conducted  to-day  on  the  old, 
autocratic  idea.  'Sit  still  and  listen  attentively,  or  it 
will  be  the  worse  for  you' — that  is  the  teacher's  atti- 
tude. '  Do  your  work  and  do  it  quickly  and  accurately, 
or  you'll  get  the  blue  envelope' — that  is  the  executive's 

attitude. 

94 


PROBLEMS    OF    PERSONNEL 

"Now,  then,  the  result  of  all  this  is  that  the  rank 
and  file  in  each  case  feel  no  interest  in  the  organiza- 
tion; the  tremendous  dynamic  force  of  the  group 
spirit,  that  spirit  which  animates  the  successful  army 
or  the  victorious  football  eleven,  is  utterly  lacking. 

"In  school,  the  pupils  are  commanded  to  do  a  certain 
thing  and  they  do  it,  perfunctorily,  half-heartedly. 
They  don't  know  what  it's  all  about,  neither  do  they 
care.    The  same  applies  in  great  measure  to  offices. 

"But  just  try  the  experiment  of  consulting  with 
your  pupils  or  employees,  rather  than  dictating  com- 
mands, and  watch  the  well-nigh  instantaneous  change 
in  attitude.  Promptly  appears  the  reaction  to  re- 
sponsibility, that  latent  force  which  Hes  within  every 
normal  person. 

"The  task  in  hand  immediately  assumes  an  entirely 
different  complexion.  A  citizen  of  a  democracy  is  far 
more  interested  in  the  commonwealth's  welfare  than 
is  the  inhabitant  of  an  autocracy.  He  feels  a  sense  of 
proprietorship,  and  reacts  accordingly.  In  the  George 
Junior  Republic  destruction  of  property  and  lawless- 
ness at  once  ceased  upon  the  allotment  to  each  ^citi- 
zen' of  his  own  vine  and  fig-tree. 

"In  a  book  on  the  Gary  schools  of  Indiana,  Mr. 
Randolph  Bourne  says: 

Some  visitors,  appalled  by  the  freedom  of  the  Gary  schools, 
look  about  for  signs  of  depredation.  But  they  do  not  seem  to 
find  any.  The  visitor  gets  the  impression  that  these  schools  have 
acquired  a  "pubUc  sense."  The  schools  are  the  cliildren's  own 
institution,  and  are  public  in  the  same  broad  sense  that  streets 
and  parks  are  public.    The  tone  is  of  a  glorified  democratic  club, 

95 


MODERN    METHODS    IN    THE    OFFICE 

where  mcm]-)crs  arc  availing  themselves  of  privileges  which  they 
know  are  theirs.  One  expects  children,  unless  they  are  challenged 
to  inventive  wickedness,  no  more  to  spoil  their  school  than  a  lawyer 
is  likely  to  deface  the  panels  of  his  club. 

"The  Gary  schools  represent,  perhaps,  the  most 
radical  application  of  democracy  to  education  that 
the  world  has  yet  witnessed,  at  least  on  so  large  a  scale. 
And  because  the  youngsters  are  encouraged  to  reach 
out  for  knowledge  instead  of  having  it  bludgeoned  in, 
they  evince  an  enthusiasm  and  interest  in  their  work 
which  has  startled  the  world  of  pedagogy. 

''Similarly,  a  democratic  management  evokes  a  spirit 
of  willing  co-operation  on  the  part  of  workers.  No  mere 
formulae,  however,  will  secure  this  result.  The  execu- 
tives must  undergo  a  rather  radical  transformation  in 
their  own  attitudes  to  achieve  any  very  lasting  re- 
sults. Profit-sharing,  self-government,  delegation  of 
responsibility — all  these  are  symptoms  of  the  type  of 
organization  which  has  achieved  democracy  and  which 
reaps  the  benefit  in  the  shape  of  an  alert,  interested 
force  of  workers. 

''But  first  we  must  grasp  the  idea  of  democracy  in 
management  in  an  abstract  sense.  The  methods  of 
application  will  immediately  suggest  themselves." 

What  Makes  a  Successful  Executive? 

In  the  course  of  a  report  on  Vocational  Guidance, 
Dr.  Henry  Clayton  Metcalf,  of  Tufts  College,  Massa- 
chusetts, formulated  the  following  interesting  table  of 
qualifications  for  an  executive: 

9G 


PROBLEMS    OF    PERSONNEL 

In  selecting  and  developing  leaders  an  appreciation  of  the  fac- 
tors or  characteristics  essential  to  efficient,  successful  leadership 
should  be  clearly  formulated  and  carefully  borne  in  mind.  The 
essential  characteristics  of  the  successful  executive  may  be  said 
to  fall  under  the  following  headings: 

1.  Character,  integrity,  resourcefulness,  initiative,  responsibility. 

2.  Imagination. — No  man  is  a  true  leader  who  cannot  project 
himself  into  the  future.  He  must  have  ideas  and  ideals  in  order 
to  lead. 

3.  Judgment. — A  man  must  have  perspective  to  see  how  many 
of  his  ideals  are  workable.  He  must  have  a  scientific  attitude 
— sound  common-sense. 

4.  Courage. — Many  men  with  good  imagination  and  lofty  ideals 
fail  because  they  lack  true  courage.  They  are  timid  or  they  try 
to  please  everybody.    Hence  they  do  not  go  forward  as  leaders. 

5.  Eficiency. — This  comprehends  the  habits  of  hard  work,  thor- 
oughness, and  constant  accuracy.  True  efficiency  comes  from 
native  talents  for  a  particular  hne  of  work,  plus  special  training, 
plus  experience,  plus  devotion  to  the  task,  plus  generosity  in  the 
work,  plus  conscience. 

6.  Understanding  of  Men. — Tliis  is  more  than  mere  knowledge 
of  men.  This  is  the  most  crucial  test  of  genuine  executive  abiUty, 
Executives  must  not  only  know  human  nature,  have  a  knowledge 
of  men,  but  literally  understand  them,  be  able  to  sympatliize  with 
them,  put  themselves  in  the  place  of  those  under  them,  and  ex- 
ercise a  "pull"  from  the  bottom  upward,  and  not  a  '^ drive' ^  or 
"-push"  from  the  top  downward.  This  understanding  of  men  and 
the  wise  leadersliip  of  subordinates  are  the  real  tests  of  organiza- 
tion fitness. 

7.  Sound  knowledge  of  the  fundamentals  of  the  industry  and  or- 
ganization of  which  the  executive  is  a  part,  and  a  knowledge  of 
business  or  trade  in  their  largest  aspects.  Many  executives  are 
inefficient  and  get  into  all  sorts  of  trouble  because  they  are  not 
properly  trained  in  the  business  in  which  they  are  to  issue  and 
execute  orders. 

8.  Skill,  wliich  comes  from  the  technique  of  practice  and  of 

business  experience  gene^all3^ 

97 


MODERN    METHODS    IN    THE    OFFICE 

9.  Courtesy. — Men  and  women  are  more  and  more  grasping  the 
business  value  of  fair,  courteous  treatment.  The  response  to  the 
appeal  to  high  ideals  is  definite,  but  discourteous  treatment  reaps 
unsatisfactory  results.  "Industry  awaits  the  administrator  who 
shall  be  all  that  a  gentleman  should  be:  efficient  but  humane, 
adroit  but  honorable,  a  lover  of  his  fellow-men  as  well  as  a  leader 
of  them;  and  who  shall  use  his  power  with  gentleness,  and  liis 
wealth  with  imagination,  and  shall  illuminate  the  world  of  private 
property  with  light  from  the  far-away  interests  of  the  heart." 

If  this  be  a  correct  conception  of  the  essential  fac- 
tors of  a  successful  executive,  it  should  furnish  a  stand- 
ard in  discovering,  selecting,  and  developing  executive 
organization,  and  point  out  methods  of  instruction 
and  educational  procedure. 

The  head  of  a  large  industrial  concern  must  first 
define  in  his  own  mind  the  product  he  desires  from  the 
various  duties  to  be  performed.  In  sizing  up  men, 
especially  young  men,  for  training  and  promotion  to 
executive  positions,  he  is  exercising  his  most  funda- 
mental and  vital  function.  The  selection,  training, 
and  functioning  of  executives  determine  the  entire  or- 
ganization. 

A  Passage  from  Exodus  Solved  this  Business  Man's 
Problem 

"The  expansion  of  the  business  of  the  man  who  can- 
not bring  himseK  to  delegate  his  duties  and  authority 
is  limited  to  the  amount  of  detail  that  he  can  per- 
sonally oversee,"  said  the  proprietor  of  a  manufac- 
turing plant. 

"I  shall  never  forget  a  word  of  advice  which  was 

98 


PROBLEMS    OF    PERSONNEL 

given  me  many  years  ago  when  I  was  acting  as  super- 
intendent of  a  factory.  I  could  not  bring  myself  to 
relinquish  responsibihty  to  my  lieutenants,  and,  as  a 
consequence,  worked  fourteen  to  sixteen  hours  a  day. 
Finally  it  was  decided  to  double  the  capacity  of  our 
plant.  The  president  of  the  concern  called  me  into 
his  office  one  day. 

'"Well,  we've  concluded  to  enlarge,'  he  remarked, 
'and  it  will  mean  a  lot  more  work  for  you.  Your 
health  is  beginning  to  break  under  the  present  strain. 
How  are  you  going  to  stand  up  under  the  added 
burden? 

'''Now,  Morgan,  you've  got  to  get  a  new  slant  on 
your  job.  You've  got  to  learn  to  delegate  your  duties. 
When  you  go  home  to-night,  you  read  Exodus  eighteen : 
seventeen-twenty-six  carefully  and  come  down  in  the 
morning  prepared  to  select  some  good  timber  to  hghten 
your  load.' 

"For  a  moment  I  thought  the  old  man  was  wandering. 
But  when  I  got  home  I  did  as  he  suggested.  Here  is 
what  I  read: 

.  .  .  The  tiling  that  thou  doest  is  not  good.  Thou  vd\t  surely  wear 
away,  both  thou  and  this  people  that  is  with  thee;  for  this  thing 
is  too  heavy  for  thee ;  thou  art  not  able  to  perform  it  thyself  alone. 
.  .  .  Thou  shalt  teach  them  [the  people]  ordinances  and  laws,  and 
shalt  shew  them  the  way  wherein  they  must  wallc,  and  the  work 
that  they  must  do.  ...  So  Moses  hearkened  to  the  voice  of  his 
father-in-law,  and  did  all  that  he  had  said.  And  Moses  chose 
able  men  out  of  all  Israel,  and  made  them  heads  over  the  people, 
.  .  .  i-ulers  of  fifties  and  rulers  of  tens.  And  they  judged  the  people 
at  all  seasons;  the  hard  causes  they  brought  unto  Moses,  but  every 
small  matter  they  judged  themselves. 
8  99 


MODERN    METHODS    IN    THE    OFFICE 

''I  saw  the  point.  It  was  not  long  before  I  began  to 
see  that  not  all  the  brains  of  our  organization  were 
concentrated  in  my  cranium.  I  selected  and  developed 
several  able  Ueutenants.  This  left  me  more  time  to 
consider  the  plant's  future  needs.  I  began  to  get  a 
more  comprehensive  grasp  of  our  problems.  From 
the  reading  and  digestion  of  that  passage  of  Exodus 
dates  my  development  into  a  real  business  man." 

Have  You  Perspective? 

''You  must  have  perspective — a  breadth  of  view — 
in  order  to  achieve  success  in  business,"  says  a  booklet 
issued  by  a  well-known  correspondence  school  of  ac- 
counting. 

''This  is  the  age  of  specialization  in  business,  for 
it  is  by  means  of  specialization  that  the  greatest  profit 
returns  are  secured.  Every  large  business  organiza- 
tion is  divided  and  subdivided  into  departments  and 
sub-departments,  with  relatively  few  managerial  posi- 
tions, and  with  scores  of  routine  positions  filled  by 
routine  employees.  Each  functions  in  his  own  narrow 
groove,  with  no  opportunity  of  widening  his  perspec- 
tive of  the  work  of  the  organization  as  a  whole. 

"The  bookkeeper  posts  away  at  his  ledger,  thinking 
only  of  the  schedule  that  must  balance.  The  stock- 
clerk  earns  his  weekly  wage  by  checking  up  invoices 
of  goods  purchased  and  bills  of  goods  sold,  with  now 
and  then  an  inventory  of  goods  on  hand.  The  cashier 
thinks  by  day  and  dreams  by  night  of  petty  cash, 
pay-rolls,   discounted  bills,   and  extensions  of  notes. 

100 


PROBLEMS    OF    PERSONNEL 

The  salesman  frets  over  his  failure  to  sell  X,  Y 
Company  in  the  town  of  Z  a  double  order  of  worsted 
fabrics,  and  spends  his  mental  energy  in  devising  new 
methods  of  selling-approach.  The  pubHcity  man  puts 
his  mind  day  in  and  day  out  on  newspaper  space, 
pictorial  booklets,  display  type,  and  special  adver- 
tising campaigns. 

"And  so  it  goes,  each  employee  doing  his  particular 
work  and  trying  to  do  it  well,  in  order  that  the  monthly 
report  of  each  department  to  the  general  manager  may 
show  that  it  is  doing  its  share  in  the  attainment  of  the 
profit  object  of  the  organization. 

"Hoiv  much  do  you  know  of  the  work  of  your  organi- 
zation aside  from  your  specialized  duties? 

"Specialization  has  come  to  stay,  and  will  doubtless 
be  carried  to  even  greater  extremes  in  the  future  as 
enterprises  continue  to  develop  and  become  more 
complex.  There  are,  however,  to-day  many  signs  of 
the  growing  conviction  on  the  part  of  business  or- 
ganizations themselves  that  individual  speciahzation 
must  be  accompanied,  or,  better  still,  preceded  by, 
the  development  of  individual  perspective. 

"The  progressive  business  organizations  of  the  pres- 
ent day  have  come  to  realize  that  their  future  business 
development — in  fact,  their  future  business  existence 
— depends  upon  the  development  of  managerial  ca- 
pacity in  their  individual  employees.  Many  organi- 
zations, indeed,  have  turned  schoolmaster  and  are 
conducting  classes  on  company  time  and  at  company 
cost  in  Accounting,  Law,  Applied  Economics,  and  in 
the  related  subjects  of  Finance  and  Management  in 

101 


MODERN    METHODS    IN    THE    OFFICE 

order  to  give  selected  groups  of  their  employees  a 
broad  perspective  of  business  as  a  whole  and  as  applied 
to  the  particular  needs  and  conditions  of  the  organiza- 
tions themselves.  Other  organizations  are  encourag- 
ing their  employees  to  pursue  outside  studies,  in  many 
cases  pajdng  their  tuition  charges. 

'  It  is  impossible  for  the  average  man  employed  by  a 
large  organization  to  gain  from  his  routine  position  a 
broad  view  of  its  workings  as  a  section  of  the  entire 
organization.  He  has  neither  the  time  nor  the  oppor- 
tunity. The  only  thing  he  can  do,  therefore,  is  to  take 
up  an  evening  course  of  study  which  will  supply  him 
with  the  broad  perspective  of  business  necessary  for 
his  advancement." 

Piece-work  vs.  Day-work 

"The  piece-work  plan  of  payment,  if  combined  with 
measures  which  will  serve  to  correct  the  worker's 
tendency  to  feel  satisfied  with  a  certain  minimum  in- 
come, is  doubtless  one  of  the  best  systems  for  insuring 
a  high  output  and  predetermining  labor  costs,"  said 
an  executive,  recently. 

''But  in  some  plants  the  nature  of  the  work  is  such 
that  the  piece-work  idea  is  impracticable.  Uniformity 
of  output  is  necessary  to  its  successful  application. 
In  such  instances,  the  desirable  personal-incentive 
element  which  is  present  under  the  piece-work  system 
is  injected  by  the  following  method: 

"Operatives  are  timed  to  such  a  degree  that  it  is 
possible  to  estimate  the  standard  time  required  for 

102 


PROBLEMS    OF    PERSONNEL 

a  job  of  any  nature  which  may  come  into  the  shop. 
With  each  allotment  of  work  goes  a  ticket  giving  the 
cost  allowed  for  its  completion.  The  worker  who  is 
paid  a  regular  hourly  rate  can  then  figure  the  time 
allowed. 

''If  he  completes  the  job  before  the  specified  hour, 
he  is  credited  with  the  difference;  if  after,  debited.  If 
he  shows  consistent  gains,  at  pay-day  his  rate  of  pay 
is  increased;  if  losses,  and  an  investigation  shows 
that  the  time  estimate  is  reasonable,  he  is  shifted  to 
another  department  or  discharged. 

"Thus,  although  the  men  are  employed  on  a  day- 
work  basis,  the  advantages  of  the  piece-work  system 
are  preserved." 

How  to  Insure  a  Satisfactory  Volume  Under  a  Piece- 
work System 

''One  would  think  that  men  working  on  a  piece- 
rate  basis  would  be  inchned  to  exert  every  effort," 
said  the  superintendent  of  a  large  plant,  "but  the  fact 
of  the  matter  is  that  human  nature  is  such  that  some 
men  will  actually  do  less  work  on  a  piece-work  basis 
than  on  a  day-work.  They  are  inclined  to  feel  that 
it  makes  little  difference  to  their  employer  as  to 
whether  or  not  they  work  hard,  and,  consequently, 
when  they  have  a  little  money  saved  up  some  are 
incUned  to  slacken  their  efforts. 

"Now,  as  a  matter  of  fact,  an  employer  is  just  as 
interested  in  securing  a  big  output  on  a  piece-work 
basis  as  he  is  on  a  day-work.    For  the  overhead  burden 

103 


MODERN    METHODS    IN    THE    OFFICE 

remains  practically  the  same,  however  the  volume  may 
vary. 

"Several  plans  are  in  practice  for  maintaining  a 
high  average  of  effort  among  piece-work  workers. 
Some  firms  pay  a  bonus  at  the  year's  end,  comprising 
a  percentage  of  a  man's  earnings,  the  percentage  in- 
creasing in  proportion  to  the  level  of  production  main- 
tained. Others  apply  this  idea,  but  on  a  monthly  or 
weekly  basis.  And  finally  a  drastic  but  effective 
stimulus  is  to  discharge  those  workers  who  are  absent 
from  work  too  often  or  whose  output  falls  below  a 
certain  standard. 

"One  thing  is  certain:  the  mere  installation  of  the 
piece-work  system  does  not  insure  great  volume. 
Other  measures  are  necessary  to  effect  this  result." 

"Profit-sharing  Means  Permanent  Employees," 
says  this  Executive 

"We  have  operated  on  a  profit-sharing  basis  for 
fifteen  years,"  said  Mr.  Arthur  F.  Lewis,  of  the  Sim- 
plex Wire  and  Cable  Company,  of  Cambridge,  Massa- 
chusetts, a  concern  employing  several  hundred  men. 
"And  the  fact  of  our  retaining  the  system  is  evidence 
of  our  successful  experience  of  it. 

"The  chief  advantage  accruing  from  profit-sharing  is 

that  it  tends  toward  the  establishment  of  a  permanent 

working  force.     What  this  means  in  added  profits  is 

known  to  every  executive  who  has  figured  out  the  loss 

occasioned  by  the  necessity  of  constantly  breaking  in 

new  hands. 

104 


PROBLEMS    OF    PERSONNEL 

''Furthermore,  profit-sharing  is  a  strong  influence 
in  eUminating  strikes  and  labor  disputes.  By  empha- 
sizing the  fact  that  the  interests  of  both  factors,  em- 
ployers and  employees,  are  identical,  profit-sharing 
tends  toward  the  maintenance  of  harmonious  relations. 

''Profit-sharing,  furthermore,  puts  the  employees  to 
a  great  extent  upon  their  own  responsibility.  They 
feel  a  certain  sense  of  proprietorship  in  the  establish- 
ment and  will  not  tolerate  soldiering  and  carelessness 
upon  the  part  of  certain  employees  who  may  not 
respond  to  the  added  incentive. 

"I  doubt,  however,  if  this  system  has  a  very  marked 
effect  in  increasing  the  actual  daily  output.  Because 
dividend  payments  are  made  only  once  a  year,  the  incen- 
tive for  added  effort  is  perhaps  too  remote. 

"A  bonus  system  of  payments,  however,  supplies  this 
missing  stimulus.  In  the  departments  in  which  it  is 
practicable,  we  operate  on  this  basis.  Thus  we  combine 
the  two  methods:  profit-sharing  to  insure  stabihty  of 
our  pay-roll;  a  bonus  system  to  increase  the  actual  daily 
output.    This,  it  seems  to  us,  is  the  ideal  combination." 

A  survey  of  the  actual  mechanism  of  this  plant's 
profit-sharing  plan  reveals  some  interesting  data. 

In  order  to  avoid  supplying  competing  concerns 
with  information  regarding  the  company's  profits,  the 
management  does  not  tell  its  employees  the  percentage 
of  profits  it  pays,  but  merely  assures  them  that  a  cer- 
tain percentage  has  been  fixed  and  that  it  will  be  main- 
tained unless,  as  has  occurred  on  three  occasions,  it  is 
increased. 

105 


MODERN    METHODS    IN    THE    OFFICE 

Dividing  the  amount  of  profits  to  be  distributed  by 
the  actual  pay-roll  gives  the  per  cent,  of  dividend  on 
each  man's  wages  which  is  to  be  paid  to  him.  To  pro- 
tect themselves  against  any  extraordinary  diminution 
of  the  actual  pay-roll,  as  well  as  a  protection  against 
a  possible  unexpected  profit,  the  management  limits 
the  dividend  to  a  maximum  of  20  per  cent. 

One  year  the  dividend  amounted  to  18  per  cent,  of 
a  man's  annual  wages.  In  1915  it  came  to  but  7  per 
cent.  No  one  is  eligible  to  share  in  the  profits  until 
he  has  been  employed  at  least  twenty-six  months. 

The  dividend  is  paid  at  noon  on  the  last  Friday  in 
February.  The  men  are  urged  to  make  good  use  of 
the  money  and  those  wishing  to  go  to  the  bank  to 
deposit  the  sum  received  are  allowed  to  go  on  the 
company's  time. 

In  the  envelope  containing  the  money  is  included  a 
printed  slip  reading  as  follows  and  filled  out  to  fit 
each  individual  case: 

201  Devonshire  Street,  Boston,  Mass. 

19.... 

M 

The  profit-sharing  statement  for  19. . . .  is  as  follows: 

Total  wages  of  all  Profit-sharers    .     .     .     .     $ 

Total  dividend  to  Profit-sharers    .     .     .     .     $ 

Di\idcnd  is %  on  wages. 

Your  wages  amounted    to    S and    j^our    dividend    is 

S ,  which  amount  please  find  inclosed. 

Yours  truly, 

Simplex  Wire  &  Cable  Co. 
106 


PROBLEMS    OF    PERSONNEL 

In  a  recent  address  the  president  of  the  company, 
Mr.  Everett  Morss,  said: 

Om-  profit-sharing  was  started  not  as  a  charity,  but  as  a  business 
move,  and  after  twelve  years'  experience  we  are  convinced  that 
it  has  contributed  to  our  financial  welfare  as  well  as  to  our  satis- 
faction in  the  conduct  of  the  business. 

Our  success  would  seem  at  least  to  justify  the  serious  considera- 
tion of  the  idea  by  other  emploj^ers. 

We  believe  it  should  be  equally  successful  in  other  places, 
though  what  are  its  limitations  and  what  are  the  pecuUarities  of 
our  conditions  that  might  cause  it  to  be  more  successful  with  us 
than  elsewhere,  we  hesitate  to  say. 

Think! 

''Ideas!"  remarked  the  manager  of  a  large  business 
organization,  recently,  during  the  course  of  an  address 
to  his  force,  ''that's  what  we  want  from  our  men. 
Ideas  apphed  to  inert  matter  have  created  civiliza- 
tion. You  can  buy  a  ton  of  pig  iron  for  twenty  dol- 
lars. Inject  an  idea — convert  it  into  horseshoes — 
and  you've  added  seventy  dollars  to  its  value.  Com- 
bine it  with  still  more  ideas — manufacture  cutlery — 
and  you've  added  one  hundred  and  eighty  dollars. 
Mix  in  some  more  ideas — turn  it  into  watch-springs — 
and  you've  increased  its  value  nine  hundred  and 
eighty  dollars. 

"An  idea  regarding  'acid  mouth'  and  a  test  for  the 

condition  occurred   to  an  advertising  man  who  was 

writing  copy  for  a  dentifrice.    Probably  that  idea  has 

been  worth  one  hundred  thousand  dollars  or  more  to 

the  concern. 

107 


MODERN    METHODS    IN    THE    OFFICE 

'''I  wonder  if  there  isn't  some  way  of  combining 
the  big -scale  production  efficiency  of  the  ready- 
made  -  clothing  manufacturers  with  the  more  satis- 
factoiy  fit  of  the  made-to-order  suits?'  reflected  a 
young  man  a  few  years  ago.  His  idea  of  a  solution 
of  the  problem  resulted  in  the  establishment  of  an 
immense  concern  which  clothes  hundreds  of  thou- 
sands of  men. 

''An  idea  regarding  shipping  knocked-down  houses, 
coupled  with  a  few  dollars  for  an  ad.  inserted  some 
nine  years  ago,  resulted  in  the  present  immense  busi- 
ness of  the  Aladdin  Company.  Over  forty  houses  are 
shipped  from  their  plant  daily. 

'''Let's  turn  out  our  baking-powder  in  a  case  with 
a  handle,'  suggested  the  manager  of  a  concern  making 
this  product.  The  idea  made  a  hit  with  housewives. 
The  demand  for  the  baking-powder  showed  a  distinct 
increase. 

"Speaking  of  baking-powders,  do  you  know  who 
originated  them?  Back  in  1852  Dr.  Vincent  Price 
was  disturbed  by  the  fact  that  his  mother's  dyspepsia 
prevented  her  eating  yeast  bread.  As  a  student  of 
pharmacy  he  was  well  equipped  to  seek  a  substitute 
for  yeast.  The  result  was  baking-powder.  With  this 
idea  and  less  than  three  thousand  dollars  capital, 
young  Price  started  to  manufacture  commercially. 
Less  than  forty  years  later  he  sold  the  business  his 
idea  had  created  for  a  million  and  a  half  dollars. 

"Ideas  make  the  world  go  round,"  concluded  the 
speaker.  "And  no  one  has  cornered  the  market. 
Don't  be  mere  routine  men.     Think!     Submit  your 

108 


PROBLEMS    OF    PERSONNEL 

ideas  to  the  management.  If  they're  practicable, 
you'll  find  the  concrete  evidence  in  your  pay-envelopes. 

"You  may  have  an  idea  before  the  whistle  blows 
to-night  that  will  save  us  one  hundred  thousand  dol- 
lars. The  late  Elbert  Hubbard  claimed  that  he  once 
sold  an  idea,  undeveloped  and  unperfected,  for  seventy- 
five  thousand  dollars  cash,  and  that  the  purchaser 
made  a  good  investment. 

''We  have  three  thousand  men  and  women  on  our 
pay-roll.  The  combined  ideas  lying  latent  in  those 
three  thousand  brains  will  serve  to  estabhsh  us  as  the 
leading  concern  in  our  field  in  the  world.  And  the 
bigger  we  grow,  the  more  we'll  all  prosper.    Think!" 


Ill 

POINTERS  ON  SYSTEM 
A  File  within  a  File 

In  most  business  offices  correspondence  is  now  filed 
alphabetically  rather  than  by  the  former  system  of 
first  numerically  and  then  alphabetically. 

But  one  concern  has  found  that  even  this  plan  can 
be  improved  upon.  Often,  for  instance,  a  mass  of 
correspondence  for  a  certain  customer  centered  upon 
a  particular  job.  But  the  folder  contained  this  and 
other  correspondence  from  the  same  customer  indis- 
criminately assembled.  To  sort  it  required  valuable 
time,  often  that  of  a  high-salaried  man. 

A  remedy  for  this  condition  was  found. 

Thin  sheets  of  cardboard  the  size  of  a  letter-head, 
perforated  with  three  holes  on  one  side,  were  supplied 
to  the  filing-clerk.  Correspondence  and  data  relating 
to  a  specific  order  were  then  securely  fastened  together 
by  the  use  of  fasteners  which  passed  through  similar 
perforations  in  the  documents. 

This  plan  put  a  little  more  work  on  the  shoulders 
of  the  filing-clerk,  but  saved  the  time  of  every  one  else 
in  the  office.    A  simple  device,  but  one  worth  while. 

110 


POINTERS    ON    SYSTEM 

Furthermore,  it  is  applicable  to  a  great  many  lines  of 
business. 

For  the  Office  Employee 

''The  index  tabs  on  our  filing  system  were  constantly 
becoming  soiled  and  bent,"  said  a  filing-clerk.  ''How 
to  prevent  this  condition  was  the  problem  which  con- 
fronted me.  Finally  I  tried  the  experiment  of  brush- 
ing a  thin  coat  of  shellac  over  them  as  soon  as  they 
were  installed.  It  stiffened  the  tab ;  kept  the  lettering 
from  becoming  undecipherable;  tripled  the  life  of  the 
tab." 

"Often  in  the  course  of  my  work  I  have  to  make 
many  carbons  of  the  same  letter  or  document,"  said 
a  stenographer.  "I  found  that  the  insertion  of  a  strip 
of  celluloid  between  the  last  sheet  and  the  platen  re- 
sulted in  much  cleaner  copies.  It  made  the  final 
copy  of  a  series  of  six  as  clear  as  though  it  were  the 
second  or  third  copy  under  ordinary  conditions." 


The  Filing  System — How  Perforations  Enable  One  to 
Instantly  Locate  a  Misplaced  Card 

"Mr.  Coburn!"  The  peppery  general  manager's 
voice  disclosed  irritation. 

"Yes,  sir,"  replied  the  office  manager.  "What  is  it 
now?"  he  reflected,  as  he  approached  the  chief  execu- 
tive's desk. 

Ill 


MODERN    METHODS    IN    THE    OFFICE 

''What  in  Heaven's  name  is  wrong  with  our  filing 
system?"  demanded  Palmer.  "For  the  third  time  this 
week  I've  failed  to  find  a  customer's  card  in  its  proper 
place.  The  first  time  it  required  two  days'  work  for 
the  fihng-clerk  to  discover  it;  the  second  time  was 
nearly  as  bad.  And  now  here's  another  case.  I  can't 
find  Grantley's  card." 

"Well,  Mr.  Palmer,  mistakes  will  occur,"  said  Co- 
burn,  propitiatingly.  "And  I've  never  heard  of  a  sys- 
tem of  locating  a  lost  card  without  going  through  the 
entire  assortment." 

"Find  a  system,  Mr.  Coburn,"  ordered  Palmer, 
peremptorily.    "If  you  can't  find  one,  invent  one." 

And  as  Palmer's  'phone  rang,  Coburn  retreated  in 
discomfiture,  happy  to  be  spared  a  resumption  of  the 
discussion. 

Consultations  with  various  filing  experts  finally 
unearthed  a  system  which  Coburn  promptly  in- 
stalled. 

Here  it  is  described:  an  adaptation  of  the  Bertillon 
system.  The  principle  is  simple  in  the  extreme :  merely 
that  of  perforating  cards,  belonging  in  the  same  sub- 
division, similarly.  In  case  of  a  card's  being  mis- 
placed, by  holding  groups  of  cards  to  the  light  and 
peering  through  the  perforations  the  presence  of  a  mis- 
filed  card  is  promptly  disclosed  by  the  fact  that  one 
of  the  holes  presents  an  opaque  obstruction. 

Each  card  in  Coburn' s  filing-cabinet  is  now  equipped 

with  a   space  at   the  right  edge  which  appears  as 

follows : 

112 


POINTERS    ON    SYSTEM 


/ 

GUIDE     NO. 

( 

1 

1 

8 

1 

o 

o 

o 

o 

) 

o 

O 

1 

O 

) 

z 

2. 

2. 

z 

( 

3 

3 

3 

3 

j 

if 

M- 

U- 

4- 

) 

5 

5- 

if 

5" 

) 

(a 

t, 

Is 

t, 

1 

7 

1 

1 

7 

\ 

« 

% 

6 

« 

I 

q 

^ 

T 

S 

Each  guide  in  the  system  is  allotted  a  number  which 
applies  to  all  cards  covered  by  that  guide.  Let  us 
assume  that  the  guide  reproduced 


z 


WA    -WE 

1 1  e  I 


be  numbered  1181.  Then  a  customer  named  Walters 
would  be  filed  under  that  guide.  The  card  would 
then  be  punched  as  indicated,  1181,  to  agree  with 
all  the  cards  contained  under  the  guide  1181. 

The  merit  of  this  plan  is  obvious.  If  a  card  is  mis- 
placed, instead  of  laboriously  inspecting  each  one  in 
the  cabinet,  the  ofTending  card  is  promptly  detected 
merely  by  holding  the  cards  covered  by  each  guide 
number  to  the  light.    If  no  obstruction  appears,  there 

113 


MODERN    METHODS    IN    THE    OFFICE 

are  twenty-five  or  thirty  cards  accounted  for  as  O.  K. 
When  the  vision  is  obstructed,  there  Hes  the  missing 
card.  It  means  merely  wholesale  inspection  rather 
than  retail.  And  the  saving  in  time  and  bother  is 
well  worth  the  moment  or  two  consumed  in  punching 
a  new  card  to  correspond  with  those  filed  in  its  par- 
ticular section. 

Filing  Facts 

''Much  sarcasm  has  been  indulged  in  at  the  expense 
of  fihng  systems,"  said  an  office  manager,  ''and  much 
of  it  is  deserved.  For  example :  Smith  sneaks  furtively 
into  Brown's  office  and  remarks: 

'"I'm  carrying  some  valuable  documents  which  I 
wish  to  hide.    What  can  you  suggest?' 

'"Put  'em  in  my  files,'  rephes  Brown.  ^Nobody  ever 
finds  anything  there.' 

"One  mistake  often  made  is  to  seek  to  apply  similar 
systems  to  utterly  different  lines  of  business.  There 
are,  of  course,  four  radically  different  plans  to  follow: 
the  alphabetical,  numerical,  geographical,  and  by  sub- 
ject. And  which  is  the  best  depends  upon  a  business's 
filing  demands. 

"For  the  average  business  of  moderate  size,  the 
alphabetical  is,  in  my  opinion,  the  best  system.  For 
a  concern  with  a  wide  and  fairly  uniform  distribution 
through  salesmen,  agents,  etc.,  the  geographical  is  a 
good  system. 

"If  the  volume  of  correspondence  becomes  too  great 
to  be  adequately  handled  by  either  the  alphabetical 

114 


POINTERS    ON    SYSTEM 

or  the  geographical  method,  one  is  forced  to  adopt  the 
numerical.  The  numerical  is,  properly  speaking,  not 
a  different  method  from  the  two  mentioned.  It  merely 
consists  of  an  index-card  file,  arranged  either  geo- 
graphically or  alphabetically,  which,  in  turn,  refers 
to  the  actual  file,  which  is  arranged  numerically.  Each 
card  in  the  index  file  is  arbitrarily  numbered  to  cor- 
respond with  a  file  in  the  filing  system. 

"Critics  of  this  system  object  to  the  additional  mo- 
tion involved.  But,  personally,  I  believe  that  it  saves 
time  and  errors  where  a  vast  correspondence  is  con- 
ducted. 

''The  fourth  plan  named,  filing  by  subjects,  applies 
to  a  purchasing  department  or  some  similar  need. 

"No  one  except  the  filing-clerk  should  place  matter 
in  the  files.  Centralization  of  responsibility  is  abso- 
lutely necessary.  She  should  be  equipped  with  a  sorter, 
a  miniature  file,  in  which  the  day's  correspondence  is 
segregated,  and  from  this  portable  file  she  can  dis- 
tribute the  matter  without  taking  unnecessary  steps." 

*'  My  Partner,  the  Tickler  " 

"I'd  like  a  dime  for  every  foot-pound  of  human 
energy  which  is  wasted  daily  in  the  effort  to  remember 
items  which  should  have  been  committed  to  paper," 
said  a  successful  executive.  "Actually  I  believe  that 
the  incapacity  for  clear,  straight  thinking  about  which 
so  many  complaints  are  made  is  largely  due  to  the  dis- 
tracting   strain    to   which   many   men   subject   their 

memories. 
9  115 


MODERN    METHODS    IN    THE    OFFICE 

"A  note-book  for  your  pocket  and  a  tickler  for  your 
desk,  these  act  as  supplementary  brains  to  the  man 
who  avails  himself  of  them,  and,  used  to  their  fullest 
extent,  go  far  toward  increasing  efficiency. 

"More  and  more  is  the  budget  system  for  monetary 
expenditure  being  applied  in  business  houses;  the  bud- 
get system  for  time  expenditure  is  no  less  important. 
The  tickler  suggests  this  plan. 

'^Sit  down  at  your  desk  January  first  and  plan 
your  year.  A  dozen  items  will  probably  serve  as 
guides.  Enter  them  in  your  tickler.  Then  plan 
your  month.  Here  you  find  the  memory-burdening 
details  beginning  to  crop  up.  Enter  them  also. 
Then  plan  your  week.  The  convenient  tickler  takes 
care  of  the  separate  items  and  your  mind  is  free 
to  grapple  with  broad  questions  of  policy  instead  of 
being  hampered  by  the  thousand  and  one  petty  de- 
tails which  keep  the  unsystematic  mind  in  a  con- 
stantly distraught  condition. 

''Furthermore,  the  budget  system  for  time  means 
that  subjects  will  receive  their  shares  of  an  executive's 
time  in  proportion  to  their  importance.  Too  many 
executives  devote  a  week  to  analyses  of  paint  for  the 
plant  and  a  day  to  the  investigation  of  new  develop- 
ments in  profit-sharing  or  bonus  systems  of  pajanent. 
In  case  of  accident  or  sudden  illness,  the  tickler  enables 
your  lieutenants  to  cope  with  the  problems  which 
center  upon  your  desk. 

"The  tickler  saves  strain  and  brain  fag,  saves  errors 
and  omissions,  saves  time  and  tempers.  Every  execu- 
tive should  have  one  as  his  understudy." 

116 


POINTERS    ON    SYSTEM 

Apply  the  Aquaphone  Test  to  Your  Organization 

An  instrument  called  an  aquaphone  has  been  per- 
fected which  is  sufficiently  sensitive  to  register  the 
leaking  of  water,  even  though  the  leak  be  located  many 
feet  from  the  listener.  It  is  used  by  water-company 
inspectors.  Equipped  with  an  aquaphone,  they  halt 
outside  a  residence  at  night  and  can  tell  whether  or 
not  the  householder  has  left  the  water  running  in  the 
kitchen  to  avoid  danger  of  his  pipes  freezing.  And 
when  it  comes  to  wasting  the  community's  water,  no 
man's  house  is  his  castle.  The  claii'voyant  aquaphone 
brings  the  offender  to  the  bar  of  justice. 

If  a  man  could  invent  an  aquaphone  which  would 
detect  the  manifold  leaks  which  sap  the  vitality  of 
every  business,  he  could  name  his  own  price.  Hundreds 
and  even  thousands  of  dollars  are  thrown  into  the 
waste-baskets  of  many  large  concerns  annually.  Lack- 
ing an  aquaphone,  the  next  best  thing  is  a  system 
which  will  prevent  unnecessary  waste. 

The  auditor  of  one  large  concern  concluded  that  the 
bills  for  office  supplies  were  out  of  all  reason.  Without 
warning  the  office  force,  he  began  to  investigate  the 
contents  of  the  waste-baskets.  His  findings  were  illu- 
minating. Scores  of  erasers  which  cost  the  company 
from  two  cents  to  ten  cents  were  thrown  away  par- 
tially used.  Pencils,  originally  seven  inches  in  length, 
were  discarded  after  being  reduced  to  four  or  five 
inches.  Clips,  costing  one  dollar  per  thousand,  were 
used  by  the  office-boys  for  ammunition  quite  as  liber- 
ally as  though  they  were  preparing  for  a  Spring  drive 

117 


MODERN    METHODS    IN    THE    OFFICE 

on  the  enemy's  trenches.  Expensive  rubber  bands 
provided  the  propclHng  force. 

Carbon  paper,  which  costs  from  one  and  a  half  to 
two  cents  a  sheet  and  which  should  yield  ten  or  a  dozen 
clear,  sharp  impressions,  was  flung  away  after  going 
through  the  machine  two  or  three  times.  All  this  was 
disclosed  by  an  analysis  of  the  waste-basket  contents. 

Bulletins  were  immediately  posted  giving  the  results 
of  the  auditor's  investigation.  Department  heads 
were  called  up  on  the  carpet.  A  system  of  store- 
keeping  was  installed  whereby  no  clerk  could  obtain 
erasers,  pencils,  or  carbon  paper  without  displaying  the 
remnants  of  that  he  had  last  received.  Metal  pencil- 
holders  were  supplied  which  permitted  the  use  of  pen- 
cils down  to  the  last  two  inches. 

The  records  of  the  first  month  of  the  new  regime 
demonstrated  that  the  annual  saving  in  erasers 
amounted  to  $170;  in  pencils,  $300;  in  carbon  papers, 
$270;  in  chps,  $75. 

Against  this  total  of  $815  was  charged  the  few  mo- 
ments a  day  which  the  clerk  appointed  as  storekeeper 
devoted  to  this  phase  of  his  duties.  This  totaled  but 
$50  a  year;  net  saving,  $765. 

Another  large  corporation  learned  that  it  was  ex- 
pending nearly  five  hundred  dollars  merely  for  the 
envelopes  used  for  inter-department  communications. 
A  very  simple  device  cut  this  cost  to  seventy  dollars. 
It  was  to  use  an  envelope  printed  with  six  horizontal 
lines  across  its  face.  By  drawing  a  line  through  the 
last  superscription  and  addressing  the  envelope  on 
the  line  beneath,  each  envelope  was  good  for  six  trips. 

118 


POINTERS    ON    SYSTEM 

An  Error-proof  Receiving  System 

"Carelessness  in  the  receiving  department  costs 
many  stores  a  great  deal,"  remarked  the  auditor  of 
a  large  retail  concern.  ''If  the  receiving  -  clerk  is 
supplied  with  an  itemized  dupUcate  order  covering 
an  expected  shipment,  the  chances  are  that  now 
and  then  he'll  check  as  received,  items  which  never 
arrived.  To  assume  that  the  other  man  is  right 
when  that  assumption  will  save  you  trouble  is 
human  nature.  There  are  people  who  never  count 
their  change. 

''The  very  simple  plan  which  we  use  to  avoid  this 
danger  is  the  system  known  as  a  blind  tally.  We  supply 
the  receiving  department  with  a  duphcate  of  the  order 
lacking  prices  and  quantities. 

"The  clerk  fills  in  the  quantities  from  his  records, 
and  then  in  another  department  his  entries  are  com- 
pared with  the  original  order. 

"Another  method  which  is  merely  a  modification 
of  that  we  use  is  to  demand  of  the  receiving  department 
a  complete,  iteixiized  record  of  all  goods  received.  It 
seems  to  me,  however,  that  our  plan  expedites  matters 
without  involving  any  of  the  risk  attached  to  the  usual 
system  of  supplying  the  receiving-clerk  with  full  de- 
tails of  expected  arrivals." 

A  Simple  System  Covering  Shipments  Returned  for  Credit 

"We've  got  to  install  some  sort  of  system  to  take 

care  of  goods  returned  for  credit,"  exclaimed  the  gen- 
no 


MODERN    METHODS    IN    THE    OFFICE 

eral  manager  of  a  large  wholesale  house,  addressmg 
the  office  manager. 

''Under  our  present  plan  of  merely  having  the  ship- 
pmg-clerk  pencil  a  memorandum  of  goods  which  arrive, 
shipments  often  are  accepted  which  we've  refused  to 
receive  and  goods  are  sometimes  credited  twice  to 
the  same  purchaser.  I  wish  you'd  evolve  some  plan," 
he  concluded. 

"Here's  what  we  need,"  said  the  office  manager  a 
day  or  two  later,  and  he  presented  two  blanks  for  in- 
spection.    One  read  as  follows: 


Date 

To  the  Receiving  Dept. 

We  expect  goods  returned  for 
credit  from 

M 

Credit  Dcp't 

As  follows 

120 


POINTERS    ON    SYSTEM 

The  other  consisted  merely  of  a  credit  memo,  blank 
to  be  filled  in  and  mailed  to  the  customer. 

''Now  then,"  continued  the  office  manager,  "when 
goods  are  expected,  we'll  deliver  a  slip  covering  them 
to  the  receiving  department.  Upon  receipt  of  the 
goods,  the  shipper  will  make  out  a  credit  memo,  in 
duplicate,  enter  the  delivery  upon  his  stock  records, 
and  0.  K.  the  duplicate.  He  will  then  send  both  orig- 
inal and  duplicate  to  the  bookkeeper,  the  original  will 
be  mailed  to  the  customer,  proper  entry  made  on  the 
ledger,  and  the  duplicate  filed. 

''In  case  of  goods  arriving  for  which  the  shipper  has 
no  notification  slip  from  the  credit  department,  the 
proper  procedure  will  be  to  have  him  refer  the  truck- 
man to  the  credit  department;  the  credit-man  will 
then  issue  the  notification  slip  to  the  truckman  if  the 
case  so  warrants,  and  the  credit  will  then  be  handled 
as  in  the  other  instance.  This  plan  sounds  practicable 
to  me.    It  ought  to  work."  And  it  did. 

How  Henry  Brooks  Gained  a  $10  Raise  in  Pay 

"Mr.  Cordley,"  said  Henry  Brooks,  whose  function 
in  the  wholesale  house  by  which  he  was  employed  was 
to  check  all  orders  transcribed  by  the  typists  to  the 
printed  house-order  blanks,  "I've  been  figuring  out 
the  time  lost  by  our  typists  through  the  location  of 
my  desk.  They  make  about  twenty-five  trips  daily 
from  the  back  of  the  office;  multiply  that  by  eight 
girls  and  you  have  two  hundred  trips,  or  a  total  of 
twenty  thousand  feet,  or  about  three  miles.     IMove 

121 


MODERN    METHODS    IN    THE    OFFICE 

my  desk  and  'phone  back  to  the  rear  where  a  step  or 
two  will  place  the  orders  on  my  desk,  and  there's  a 
saving  of  just  so  much  lost  motion." 

''A  good  idea,"  agreed  the  office  manager,  after  a 
few  moments'  reflection.  '"Phone  the  telephone  com- 
pany to  send  up  a  man  to  shift  your  instrument." 

It  was  two  days  later.  As  business  slackened  at 
about  five  o'clock,  Henry  appeared  at  Cordley's 
desk. 

"How  does  this  suggestion  impress  you,  Mr.  Cord- 
ley?  I  have  been  noticing  lately  that  the  incoming 
mail  includes  a  great  many  letters  which  contain  ques- 
tions requiring  the  attention  of  several  of  our  depart- 
ments." 

"Yes,"  admitted  the  office  manager. 

"Under  our  present  system,  these  letters  are  marked 
for  each  department,  and  upon  receiving  one  the  de- 
partment manager  dictates  a  separate  reply.  This 
means  that  often  five  or  six  letters  are  written  in  reply 
to  one  communication.  Now  here's  a  plan  that  will 
obviate  that  extra  time  and  expense.  Why  not  have 
a  slip  printed  to  be  attached  to  each  incoming  letter 
of  this  type?  Leave  a  space  on  the  sUp  for  each  de- 
partment to  pencil  a  brief  of  its  reply.  Then  concen- 
trate the  answers  into  one  department.  This  will 
mean  that  one  man  can  write  one  letter  covering  every 
question  raised.  It  will  save  time  in  dictation  and  in 
copying,  also  money  in  stamps  and  stationery." 

"It  sounds  like  a  good  idea,"  admitted  Cordley. 
"We'll  try  it  and  see  if  any  defects  develop.    Frankly, 

122 


POINTERS    ON    SYSTEM 

I  think  of  no  objections  at  present.  .  .  .  We're  glad  to 
see  you  taking  so  much  interest  in  the  business, 
Brooks,"  he  added.  ''That's  the  spirit  that  pushes  a 
man  up  into  higher-salaried  jobs." 

The  Case  of  Melton,  the  Man  Who  Lacked  Originality 

"Yes,  Judson  is  a  good  man,"  admitted  the  young 
proprietor  of  a  jobbing-house,  "and  he  had  more 
original  ideas  than  any  man  I've  ever  employed.  But 
I'm  letting  him  go.  He  has  received  an  offer  at  a  higher 
salary  and  I'm  paying  him  all  I  can  afford  to.  A  man 
with  genuinely  original  ideas  is  a  tremendous  asset 
to  the  community.  But,  measured  in  terms  of  value 
to  his  employer,  I  prefer  an  able  adapter.  A  live,  en- 
terprising adapter  profits  by  the  discoveries  and  in- 
novations of  all  the  original  minds  in  the  country. 
The  original  man,  as  a  rule,  depends  only  upon  his 
own  necessarily  limited  achievements. 

"I  once  had  the  opportunity  to  study  the  methods 
of  a  man  whom  I  shall  always  consider  the  ablest 
business  man  of  my  acquaintance;  ablest  in  the  sense 
of  filling  his  niche  more  capably  than  any  man  I've 
ever  seen.  And  he  was  utterly  lacking  in  originality. 
An  interesting  type;  we  used  to  call  him  the  human 
cash-register.    I'll  tell  you  about  him. 

"At  the  time  I  knew  Melton  he  was  between  thirty- 
five  and  forty  years  of  age,  married,  and  held  the 
position  of  operating  manager  of  a  chain  of  five  fairly 
sizable  department  stores.  Two  were  the  largest  stores 
in  cities  of  over  a  half -million  population.      INIelton 

123 


MODERN    METHODS    IN    THE    OFFICE 

had  worked  his  way  up  from  a  twelve-dollar-a-week 
behmd-the-counter  job. 

''Never  have  I  seen  a  man  more  utterly  concentrated 
upon  one  object — the  complete  mastery  of  his  business. 
He  never  indulged  in  recreation  of  any  sort;  never  un- 
bent; never  allowed  himself  a  hobby;  every  hour  not 
spent  in  eating  or  sleeping  was  devoted  to  business. 
Personally  he  was  the  strangest  individual  I  have  ever 
met.  He  seemed  to  have  none  of  the  characteristics 
of  a  normal  human  being.  He  had  not  a  friend  in  the 
world,  nor  an  enemy.  He  was  a  mere  machine  for  the 
acquisition  and  application  of  profitable  information. 

"On  trains,  street-cars,  and  in  his  home  Melton 
was  always  studying  business  or  trade  magazines, 
reading  books  dealing  with  various  aspects  of  his 
business  or  volumes  concerning  the  manufacture  and 
marketing  of  the  vast  range  of  merchandise  which  he 
handled.  It  was  not  money  that  Melton  was  so  in- 
terested in;  it  was  a  sort  of  fanatical  ambition  to 
become  the  greatest  authority  in  the  country  upon  the 
subject  to  which  his  time  was  devoted — the  profitable 
operation  of  a  department  store. 

"As  Melton  read  he  clipped,  and  as  he  chpped  he 
filed.  Every  few  evenings  he  would  then  review  his 
files  with  the  idea  of  refreshing  his  memory.  The 
result  of  all  this  was  that  shortly  after  the  application 
of  a  new  idea  to  department-store  operation  anywhere 
in  the  world.  Melton  heard  of  it  and,  if  practicable, 
promptly  installed  the  new  method  in  his  chain  of 
stores.  He  subscribed  to  the  service  of  two  clipping 
bureaus  and  received  many  new  ideas  from  this  source. 

121 


POINTERS    ON    SYSTEM 

In  a  word,  he  cashed  in  on  the  combined  originality 
of  the  human  race.  Isn't  it  obvious  that  this  type  of 
mind  is  more  valuable  to  its  employer  than  the  original 
mind  which  evolves  a  good  new  idea  perhaps  once  a 
month? 

"But  hsten  to  the  sequel  of  Melton's  story.  Some 
years  after  leaving  my  position  as  advertising  manager 
of  one  of  the  stores  of  the  organization  with  which 
Melton  was  connected,!  met, in  a  distant  city,  Conkhn, 
the  general  manager  of  one  of  the  chain  of  stores. 

'''How's  Melton?'  I  inquired,  'the  man  you  dubbed 
the  human  cash-register?' 

"'Melton?'  he  repeated.  'Do  you  know,  that's  the 
strangest  case  I've  ever  witnessed.  He's  developed 
a  real  human  personality.  A  year  or  two  after  you 
left  us  Melton  broke  down.  The  doctor  couldn't 
diagnose  his  case  satisfactorily;  said  it  was  very 
baffling.  The  patient  couldn't  read  a  printed  page  and 
absorb  its  meaning;  seemed  to  be  a  case  of  a  mental 
and  nervous  collapse.  The  doctor,  an  acquaintance 
of  mine,  discussed  the  case  with  me  frankly.  I  sug- 
gested that  it  might  be  a  case  of  nature's  revenge 
for  the  abnormality  of  Melton's  mental  attitude  and 
manner  of  life.  Said  that  it  wasn't  reasonable  to  sup- 
pose that  any  human  being  was  here  for  the  sole  pur- 
pose of  running  a  chain  of  department  stores.  His 
mind  should  embrace  other  interests — a  harmless 
hobby,  perhaps;  occasional  recreation;  some  develop- 
ment of  the  warm,  human  side  of  life. 

"'Well,  the  doctor  talked  to  him  along  these  hnes 
Melton  himself  did  a  whole  lot  of  thinking  during 

125 


MODERN    METHODS    IN    THE    OFFICE 

those  months  in  the  sick-room.  The  result  was  that 
when  he  j&nally  tottered  into  the  office  again  he  seemed 
an  entirely  different  individual.  He  may  be  less  of 
a  business  man  than  previously,  but  certainly  he's 
more  of  a  man. 

"Outside  business  hours  you  see  him  at  the  theater, 
down  at  the  club,  out  on  the  golf-links.  And  actually 
he  has  made  a  lot  of  friends.  Yes,  doubtless  there's  a 
Umit  to  the  extent  we  can  concentrate  upon  one  object. 
The  case  of  Melton  proves  it." 

Scientific  Management  and  Its  Results 

"Scientific  management  is  really  but  one  more  step 
in  the  movement  toward  division  of  labor  which  began 
in  the  days  of  the  cave-man,"  said  an  authority  upon 
the  subject.  "By  concentrating  the  thought  and 
preliminary  adjustments  of  a  job  in  the  planning  de- 
partment, the  worker  is  enabled  to  devote  his  entire 
attention  to  just  one  object,  the  fulfilment  of  the  in- 
structions given  him.  The  one  best  method  of  ac- 
complishing every  task  has  been  determined  by  previ- 
ous experiments.  This  knowledge  is  transmitted  to 
the  operator,  with  a  consequent  increase  in  his  output 
and  earnings. 

"The  planning  department  performs  every  job  in 
imagination  before  it  enters  the  shop;  the  shop  execu- 
tives see  that  its  conceptions  are  executed  in  tangible 
materials. 

"The  planning  department  conducts  experiments  de- 
signed to  indicate  the  shortest  time  practicable  re- 

i2Q 


POINTERS    ON    SYSTEM 

quired  to  perform  each  operation,  both  hand  and 
machine,  and  records  its  conclusions. 

''When  an  order  is  received,  the  planning  department 
proceeds  to  analyze  it  thoroughly;  visuahzes  every 
motion  required  to  fill  it;  issues  complete  instructions 
regarding  all  operations  involved;  routes  each  part  and 
follows  up  all  work  in  process.  These  are  but  a  few  of 
its  many  functions. 

"Before  the  advent  of  scientific  management,  each 
individual  operator  was  expected,  in  a  great  degree, 
to  plan  his  own  work.  This  resulted  in  lost  motion 
and  inefficiency.  The  advantage  of  concentrating 
this  function  in  one  department  is  obvious.  It  means 
more  output  with  less  labor;  more  money  for  both  men 
and  management;  more  products  for  less  money  for 
the  community." 

Standardizing 

''Not  all  products  can  be  standardized,"  said  a 
business  man,  "but  scores  which  are  now  manufac- 
tured in  a  multitude  of  sizes,  styles,  and  models  could 
be  standardized  to  the  benefit  of  all  concerned.  The 
present  chaotic  condition  of  many  industries  means  an 
economic  waste  for  which  every  one  eventually  pays. 

"As  an  instance  of  what  can  be  accomplished  by  a 
little  co-operative  effort,  take  the  case  of  the  wagon 
manufacturers.  Under  the  leadership  of  the  secretary 
of  their  national  organization,  they  got  together  a 
couple  of  years  ago  and  proceeded  to  reduce  the  num- 
ber of  sizes  of  wagon  wheels  from  forty-one  to  five. 
This  saved  money  for  three  parties :  the  manufacturer, 

127 


MODERN    METHODS    IN    THE    OFFICE 

the  man  from  whom  he  bought  his  raw  material,  and 
the  final  purchaser. 

''Similar  opportunities  for  effecting  vast  savings 
exist  in  many  industries.  But  the  competitive  spirit 
is  too  strong  to  permit  of  the  application  of  such  ideas." 

Packing  Economies 

"Four  factors  must  be  considered  in  packing  goods 
for  shipment,"  said  a  manufacturer:  ''cost  of  container, 
protection  it  affords,  rate  it  commands,  and  time  re- 
quired to  pack  with  it. 

"At  one  time  we  used  old  barrels  for  shipping  our 
product.  They  cost  twelve  cents.  Then  we  tried 
sacks  at  ten  cents.  It  did  not  pay  us  to  have  the 
barrels  returned;   the  sacks  were  sent  back  to  us. 

"As  they  were  good  for  several  trips,  their  cost 
fmally  figured  down  to  three  cents.  This  looked  like 
an  improvement,  but  upon  figuring  the  additional 
time  required  to  use  the  sacks,  the  barrels  proved 
to  be  more  profitable.  We  returned,  therefore,  to 
barrels. 

"Finally,  an  ingenious  employee  devised  a  rack  for 
holding  the  sacks  and  by  its  use  we  could  pack  just 
as  quickly  as  with  barrels.  So  we  returned  to  sacks 
and  have  used  them  ever  since. 

Rules  for  Receiving-rooms 

Here  are  some  pointers  regarding  incoming  mer- 
chandise compiled  by  a  big  wholesale  concern: 

128 


POINTERS    ON    SYSTEM 

Do  NOT  knock  in  the  heads  of  barrels.  Loosen  the 
top  hoops  and  pry  out  the  head. 

Do  NOT  set  a  case  off  in  a  corner  or  put  it  with 
others  where  it  may  be  forgotten. 

Do  NOT  try  to  check  two  shipments  at  the  same 
time. 

Do  NOT  destroy  cases  until  you  are  sure  the  ship- 
ment checks  properly. 

Do  NOT  return  goods  until  you  have  been  so  au- 
thorized by  the  shipper. 

If  weights  seem  to  be  excessive,  insist  on  having 
the  goods  weighed  before  you  take  them  away  from 
the  station. 

Accept  all  goods  that  are  consigned  to  you  and  pay 
the  freight.  This  is  the  quickest  way  to  obtain  a 
satisfactory  adjustment. 

Remember  the  railroads  charge  you  for  one  hundred 
pounds,  no  matter  how  much  less  than  that  amount 
you  have. 

When  writing  about  an  invoice,  remember  to  state 
the  date  and  the  numbers  appearing  at  the  top  of  the 
invoice. 

Inter-departmental  Mail  Service  Saves  Labor 

"If  every  time  one  wrote  a  letter  he  summoned 
a  postman  to  carry  that  single  letter  to  its  destina- 
tion, how  many  postmen  would  be  required  to  handle 
the  mail  of  the  United  States?"  said  an  efficiency  ex- 
pert of  a  great  department  store.  ''It's  beyond  com- 
putation," he  continued.    "Yet  that  was  exactly  the 

129 


MODERN    METHODS    IN    THE    OFFICE 

situation  I  discovered  upon  joining  this  organization. 
Every  time  a  message  was  despatched  to  another  de- 
partment a  boy  was  summoned  to  carry  it. 

^'The  solution  was  so  simple  as  to  be  amusing. 
I  laid  out  a  route  to  be  covered  hourly  by  two  mail- 
carriers.  They  collect  the  mail  from  the  baskets, 
assemble  it  at  a  central  point,  reroute  it,  and  deliver 
it.  Thus  two  messengers  accomplish  what  formerly 
required  the  services  of  scores.  Of  course,  some  mes- 
sages have  to  be  delivered  quickly.  These  are  handled 
by  the  messenger  service.  But  ninety-five  per  cent, 
of  the  inter-departmental  communications  are  not 
urgent. 

"'Why  didn't  we  ever  think  of  that  before?'  re- 
marked the  management.  Which  was  what  the  cour- 
tiers said  when  Columbus  showed  them  how  to  make 
an  egg  stand  on  end." 

"An  Efficiency  Expert  Is  Merely  a  Piece  of  Cheese" 

"An  efficiency  engineer  is  like  a  Welsh  rabbit — 
neither  Welsh  nor  rabbit,  just  a  piece  of  cheese,"  is 
a  statement  accredited  to  a  prominent  politician. 

Some  years  ago  Harrington  Emerson  was  employed 
to  apply  efficiency  principles  to  a  great  manufacturing 
plant.  He  reduced  production  costs  25  per  cent,  and 
increased  the  men's  earnings  10  per  cent.  The  pro- 
prietors paid  him  one  hundred  and  fifty  thousand 
dollars,  and  figured  that  they'd  made  a  mighty  good 
investment. 

An  efficiency  expert  was  consulted  by  a  great  New 

130 


POINTERS    ON    SYSTEM 

York  life-insurance  company.  He  found  a  vast  force 
of  clerks  at  work  copying  ''histories."  Several  thousand 
notices  of  changes  in  policies  arrived  in  the  mail  daily. 
This  necessitated  the  copying  of  a  history  of  each  such 
policy  from  the  ledger  which  contained  it.  Each  ledger 
held  sixteen  hundred  histories.  While  a  girl  was  using 
a  ledger  to  copy  one  history,  those  remaining  in  that 
ledger  were  unavailable. 

The  efficiency  expert  transferred  the  records  from 
the  vast  tomes  to  cardboards  which  were  opaque  to  the 
eye  and  transparent  to  the  light.  From  that  time  on, 
to  copy  a  history  merely  required  the  placing  of  the 
original  cardboard  in  a  blue-print  machine  and  expos- 
ing the  card  to  a  mercury  lamp. 

The  output  of  the  clerical  force  was  tripled  and  an 
annual  saving  of  twenty  thousand  dollars  in  wages  was 
effected. 

These  are  but  two  of  thousands  of  similar  instances. 
European  industrial  plants  have  for  some  years  past 
been  availing  themselves  of  the  services  of  American 
efficiency  experts.  France,  Germany,  Italy,  England, 
Austria,  all  these  nations  recognize  their  value.  But 
id  the  politician  quoted  previously  they  are  still  but 
Welsh  rabbits — neither  Welsh  nor  rabbit,  just  pieces 
of  cheese! 

Toward  Efficiency 

"When  I  came  in  here,"  remarked  the  efficiency  ex 
pert  who  has  achieved  such  amazing  results  in  reducing 
the  operating  expense  of  a  great  department  store, 

10  131 


MODERN    METHODS    IN    THE    OFFICE 

"my  first  step  was  to  centralize  the  messenger  ser- 
vice. Instead  of  having  the  boys  located  in  squads 
about  the  store,  I  had  them  assembled  at  a  central 
point  under  the  direction  of  a  despatcher  who  sits 
at  a  switchboard.  Before  him  is  a  long  board  divided 
into  numbered  compartments,  one  for  each  boy.  Sup- 
pose a  call  comes  for  a  messenger.  The  despatcher  sends 
one,  at  the  same  time  filling  out  a  slip  which  has 

blank  spaces  for  Time   Left Time  Returned 

Dept.    No Date Messenger's 

No ,   and  placing   it   in   the   boy's   pigeonhole. 

Upon  the  latter's  return  the  time  consumed  is  entered 
and  the  slip  is  placed  in  a  numbered  box  corresponding 
to  the  compartment  which  is  assigned  him.  The  ac- 
cumulated slips  at  the  day's  end  represent  the  day's 
activities. 

''At  the  end  of  each  week,  the  time  consumed  per 
errand  is  averaged,  and  three  prizes  awarded  the  boys 
making  the  best  showing.  To-day  our  messenger  force 
numbers  over  one  hundred  less  than  when  I  assailed 
the  problem,  and  the  service  is  improved.  Several 
factors  have  contributed.    They  are: 

1.  Decentralizing  the  sales-book  system. 

2.  Installing  an  inter-departmental  mail  system. 

3.  Centralizing  the  messenger  system. 

4.  Ascertaining  the  individual  efficiency  of  each  boy 
and  rewarding  extra  speed  by  prizes. 

"The  daily  pay-roll  of  over  one  hundred  boys  is  an 
item  of  importance.  A  few  weeks'  study  upon  my 
part,  coupled  with  efficiency  experience,  resulted  in 
this  saving." 

132 


POINTERS    ON    SYSTEM 

A  $13,000-a-year  Idea 

"It's  seldom  that  I  gain  an  idea  from  studying  my 
competitors'  methods/'  remarked  a  manager  who  is 
famed  for  the  high  standards  of  efficiency  which  pre- 
vail in  his  organization.  ''More  often  it  is  from  adopt- 
ing an  idea  which  is  in  successful  operation  in  some 
entirely  different  line  of  business  that  I  effect  some 
noteworthy  saving.    For  example: 

"Some  months  ago  I  read  in  your  column  an 
account  of  the  really  amazing  results  achieved  by  an 
efficiency  expert  in  his  analysis  of  a  life-insurance 
company's  problems.  As  I  recall  it,  by  substituting 
for  the  pages  of  huge  books  semi-transparent  cards 
upon  which  the  'histories'  of  poHcy  -  holders  were 
entered,  he  was  enabled  to  secure  clear,  sharp  blue- 
prints, thus  avoiding  the  necessity  for  making  count- 
less copies.  This  reform  resulted  in  the  release  of 
many  copying-clerks. 

"I  am  a  manufacturer  and  I  market  my  product 
through  mail-order  methods.  One  would  hardly  con- 
ceive that  the  methods  of  an  insurance  company  would 
apply  to  my  business.  But  reading  that  article  made 
a  deep  impression  on  me. 

"'The  real  crux  of  that  discovery  is  that  duplica- 
tion beats  copying,'  I  reflected.  'There  must  be  some 
way  of  applying  that  to  my  enterprise.' 

"Finally  I  saw  the  way.  Now,  instead  of  copying 
orders  by  typing  or  carbon  copies,  we  make  one  'mas- 
ter copy'  of  name,  address,  date,  order  number,  in- 
voice number,  items,  amount  paid,  C.  0.  D.,  amount 

133 


MODERN    METHODS    IN    THE    OFFICE 

balance,  way  to  ship,  and  follow-up  data — four  orders 
on  each  sheet. 

''Our  boys  then  duplicate  this  complete  information 
by  machine  twenty-five  times  on  separate  papers, 
thus  making  out  invoice,  day-book  records,  shipping 
label,  signature  coupon,  follow-up  address  labels,  vis- 
ible index-cards,  collection  index-card,  and  several 
maihng  and  C.  O.  D.  envelopes. 

''This  plan  is  now  saving  us  just  thirteen  thousand 
dollars  per  year.  And  it  is  to  be  credited  indirectly 
to  the  methods  in  vogue  in  that  insurance  company. 

''You  never  know  just  where  you'll  unearth  an  idea 
which  will  save  you  large  sums.  They  crop  up  in  the 
most  unexpected  places.  This  is  because  beneath  every 
practical  application  of  a  plan  lies  a  principle.  And 
principles  apply  universally." 

Too  Much  System 

"As  a  rule,  there  is,  to-day,  too  much  system  in  the 
big  stores  and  too  little  in  the  small  ones,"  said  an 
efficiency  expert  who  specializes  on  the  retail  field. 

"The  big  stores'  systems  are  planned  to  insure  ac- 
curacy, to  supply  information,  and  to  prevent  pecu- 
lation. It  is  on  this  last  point  that  many  stores  are 
over-systematized.  A  well-nigh  endless  chain  of  sig- 
natures is  required  on  many  slips  which  deal  either 
with  the  requisition  of  merchandise  or  the  actual 
handling  of  cash.  The  idea  is  that,  although  one  or 
two  men  may  be  crooked,  the  others  are  honest,  and 

that,  because  their  signatures  are  required,  this  factor 

134 


POINTERS    ON    SYSTEM 

acts  as  a  preventive  to  any  nefarious  schemes  the  crooks 
may  evolve. 

''AH  this  is  extremely  expensive  insurance.  It  im- 
pedes the  operation  of  various  departments,  slows  up 
the  entire  organization,  and  devours  thousands  of  dol- 
lars' worth  of  time  annually. 

"A  better  plan  is  to  concentrate  as  much  of  this 
authority  as  is  possible  in  the  hands  of  one  man  who  is 
known  to  be  thoroughly  dependable.  Let  his  signature 
serve  as  a  final  O.  K.  and  have  documents  of  this 
nature  dehvered  direct  to  him." 

This  Executive's  Plan  for  a  Proper  Distribution 
of  His  Time 

"It  was  while  talking  to  my  fifteen-year-old  boy, 
who  is  in  his  first  year  in  the  high  school,  that  I  received 
an  idea  which  has  saved  me  much  time,"  said  a  busy 
executive. 

''He  showed  me  his  w^eekly-program  card,  which 
covered  each  of  the  six  periods  of  each  school  day. 
In  the  little  squares  were  entered  the  subject  he  studied 
at  the  hour  designated,  and  the  room  in  which  he  was 
located. 

"'Why  shouldn't  I  use  that  idea?'  I  reflected,  and 
I  proceeded  to  prepare  a  similar  card  for  my  own  use. 
Instead  of  dividing  the  day  into  six  periods,  however, 
I  divided  it  into  eight  of  an  hour  each. 

"When  making  appointments  I  consult  my  card  and 
enter  the  name  and  place  in  the  proper  square.  The 
chief  advantage  of  this  simple  device  is  that  I  am  en- 

135 


MODERN    METHODS    IN    THE    OFFICE 

abled  to  obtain  a  bird's-eye  view  of  the  entire  week 
and  distribute  my  appointments  intelligently;  not 
too  many  to  a  day.  Previously  certain  days  were  so 
crowded  with  interviews  that  I  had  no  time  to  attend 
to  my  mail  and  executive  duties." 

"  Graphs  "  and  Their  Usefulness 

"What  in  the  world  are  those  cabalistic  insignia?" 
inquired  Morse,  the  printer,  indicating  some  mys- 
terious-looking charts  which  lay  on  the  desk  of  Arnold, 
the  advertising  man  for  Black's  department  store. 

''Those  are  graphs,"  was  the  reply.  "Merely  a 
graphic  presentation  of  the  various  activities  of  this 
department.  For  example:  here's  a  chart  which  shows 
by  months  the  number  of  inches  of  newspaper  space 
we  consume  annually.  The  solid  line  curve  means  our 
store;  the  dotted  line,  Hollenbeck's;  the  dot  and  dash, 
Holt  &  Beebe's,  and  the  red  line,  Halstead's.  One  of 
my  assistants  draws  off  the  totals  every  month  and 
transfers  them  to  the  chart.  By  consulting  it  I  can 
see  just  how  our  competitors'  expenditures  compare 
with  ours:  in  which  months  they  expand  their  ap- 
propriations, and  by  consulting  the  chart  for  pre\'ious 
years  can  anticipate  and  prepare  for  their  seasonal 
sales  events. 

"Also  I  keep  graphs  covering  the  advertising  ex- 
penditures of  each  of  our  own  departments.  The  re- 
quirements of  some  departments  involve  the  use  of 
more  space  than  do  those  of  others ;  more  in  proportion 
to  their  gross  volumes  of  business.    Several  departments 

136 


POINTERS    ON    SYSTEM 

properly  concentrate  the  bulk  of  their  annual  expendi- 
tures into  a  four-  or  five-month  period.  Consulting 
the  graphs  of  previous  years  helps  me  to  apportion  ap- 
propriations intelligently." 

''A  good  idea,"  was  Morse's  reply,  ''and  one  that 
I  shall  apply  to  my  own  business." 

The  use  of  graphs  is  constantly  becoming  more  uni- 
versal. Factories  find  them  valuable  for  tracing  ten- 
dencies of  various  phases  of  the  business.  Scores  of 
leaks  are  located  by  this  method.  Here  are  some  items 
covered  by  the  graphs  of  one  plant. 

Selling  price  per  ton. 

Mill  cost  plus  overhead  and  selHng  expense.  (Total 
cost.) 

Mill  cost. 

Overhead  expenses. 

Selling  expense. 

Total  production — tons. 

Total  profits  per  week. 

Total  profits  per  cent,  of  money  invested. 

It  enables  the  executives  to  visuahze  the  course  of 
every  shifting  factor.  If  a  certain  curve  covering  some 
expense  item  runs  disproportionately  high,  the  graph 
flashes  a  danger  signal.  The  item  demands  a  thorough 
probe.  Often  a  change  of  management  in  some  de- 
partment has  resulted  from  a  graph  disclosure.  Main- 
tenance of  graphs  for  a  large  plant  demands  the  time 
of  but  a  few  low-priced  clerks.  They  are  rapidly 
becoming  recognized  as  indispensable. 


IV 

FOR    THE    ACCOUNTANT 

Saving  Labor  in  Bookkeeping 

"So  you  want  to  get  into  the  advertising  depart- 
ment," said  Gleason,  the  general  manager.  ''You 
say  you  don't  think  you'd  ever  develop  into  a  book- 
keeper, and  even  if  j'ou  could  you  wouldn't  want  to." 

"That's  the  idea,"  replied  William  Paxton,  aged 
twenty-two.  "I  have  a  congenital  prejudice  against 
non-constructive  labor.  Same  old  grind,  day  after 
day.  If  I  stayed  with  it  thirty  years  I  might  become 
like  fussy  old  Peckam,  an  anemic  animalculus  who 
years  ago  shriveled  into  the  mere  semblance  of  a 
human  being." 

"God  forbid!"  exclaimed  Gleason,  with  a  laugh. 
"Well,  stick  along  for  a  month  or  two.  We'll  have  to 
get  some  one  to  take  your  place  on  the  books.  Then 
you  can  shift." 

Weeks  passed  and  still  Paxton  saw  no  hope  of  succor. 
"I've  got  to  start  something  around  here,"  he  reflected. 
"If  I  could  only  devise  some  short-cut  method  of 
handling  this  job,  I  could  devote  my  spare  time  to  the 

138 


FOR    THE    ACCOUNTANT 

advertising  department  and  thus  gradually  work  into 
a  berth  there." 

It  was  two  weeks  later.  "Mr.  Gleason,"  said  Pax- 
ton,  "if  I  could  develop  a  method  of  doing  my  work 
on  the  books  in  two  days  a  week,  would  you  be  willing 
to  shift  me  into  the  advertising  department  for  the 
balance  of  my  time?" 

''Glad  to  do  it,"  was  the  executive's  response. 

"Here's  my  plan.  It  will  save  days  of  labor  weekly. 
By  analyzing  our  books  I  learned  that  we  have  about 
four  hundred  customers  to  whom  we  sell  much  of  our 
product  each  week.  Let  us  start  a  separate  ledger  for 
them,  with  dates  for  each  week  and  the  monthly  bal- 
ance rulings  already  printed.  Then  let  us  enter  only 
each  week's  invoice,  with  the  totals  at  the  month's 
end.  This  will  save  an  incredible  amount  of  excess 
labor.  I've  thrashed  it  out  with  Mr.  Peckam  and  he 
vouches  for  the  practicability  of  the  scheme." 

"Go  to  it,"  replied  Gleason,  "and  report  to  the 
advertising  manager  for  the  balance  of  your  time." 

With  the  new  plan  in  operation,  Paxton  found  that  a 
day  a  week  sufficed  for  his  bookkeeping  labors.  To-day 
he  is  assistant  advertising  manager,  in  direct  Une  of 
succession  to  the  advertising  manager's  throne. 

Tips  for  Your  Traffic  Department 

"Certain  traffic  experts  earn  a  livelihood  by  inspect- 
ing their  clients'  freight  records  from  time  to  time  and 

139 


MODERN    METHODS    IN    THE    OFFICE 

accepting  for  their  services  a  certain  percentage  of 
all  they  can  obtain  from  the  railroads  for  accidental 
over-charges,"  remarked  a  business  man.  "This  is 
good  evidence  of  the  fact  that  large  sums  are  lost 
annually  by  concerns  with  loosely  organized  traffic 
departments. 

''My  traffic  department  saves  me  a  great  deal  directly 
in  the  shape  of  allowed  claims  for  shortages  in  both 
outward  and  inward  shipments,  supervision  of  shipping 
thus  insuring  economical  classifications,  etc.  But  it 
is  even  more  valuable  in  improving  my  delivery  service 
to  my  customers. 

"The  department's  duties  can  be  roughly  divided 
as  follows:  supervision  of  (a)  inward-bound  freight; 
(6)  outward-bound  freight. 

"When  the  purchasing  agent  places  an  order,  he 
promptly  notifies  the  traffic  department  as  to  the 
probable  time  of  delivery. 

"In  case  of  delay  in  arrival,  the  traffic-man  immedi- 
ately jogs  the  railroad's  memory.  Upon  receipt  of  the 
notice  of  the  goods'  presence  in  the  freight-sheds,  an 
order  is  filled  out  authorizing  the  railroad  to  surrender 
the  shipment  to  the  bearer,  the  teamster.  This  order 
bears  an  itemized  statement  of  the  articles  expected. 
Note  that  the  original  freight  notice  is  not  intrusted  to  the 
driver.  It  is  kept  in  the  office  as  evidence  in  case  of 
need.  Before  the  teamster  leaves  for  the  freight- 
house,  he  reports  to  the  shipping  department  to  pick 
up  any  outward-bound  freight.  Upon  arrival  of  the 
goods  in  the  receiving-room,  they  are  checked  with  the 
expense  bill  by  each  department,  and  this  is  in  turn 

140 


FOR    THE    ACCOUNTANT 

compared  with  the  invoice,  duplicate  of  the  purchasing 
agent's  order,  and  freight  notice. 

"We  pay  our  freight  bills  weekly — after  we  have 
checked  the  bills.  On  outward  shipments,  an  itemized 
notice,  covering  weights,  routing,  classification,  car 
number,  etc.,  is  made  in  triplicate.  One  copy  goes 
to  the  railroad,  another  to  the  customer,  and  the  third 
remains  in  our  files.  In  case  of  claim  of  shortage  by 
the  purchaser,  our  itemized  receipt  from  the  railroad 
eliminates  all  danger  of  controversy.  This  receipt  is 
never  surrendered  for  tracing  purposes.  A  copy  is 
provided,  should  need  arise. 

''A  traffic  department  is  non-productive.  But  be- 
cause an  efficient  one  saves  lawsuits,  money,  and  ex- 
pedites shipments,  it  is  a  good  investment  for  a  con- 
cern large  enough  to  support  one." 

Efficiency  in  Filling  and  Billing  Orders 

''Here  is  our  method,"  said  the  manager  of  a  large 
wholesale  grocery-house.  ''Suppose  an  order  arrives 
from  either  a  salesman  or  a  customer.  First,  each  item 
is  marked  with  the  number  of  the  department  from 
which  it  will  be  filled.  This  clerk  also  makes  a  list  of 
the  names  of  the  house  salesmen  who  will  fill  the  order. 

"The  order  accompanied  by  the  list  is  then  tj-ped 
upon  a  house  order  form,  enough  carbons  being  made 
to  cover  each  department  involved. 

"On  each  of  these  forms  appear  name  and  address  of 
customer,  date,  and  the  name  of  salesman  to  whom 
order  is  credited.     These  are  then  distributed  to  the 

141 


MODERN    METHODS    IN    THE    OFFICE 

proper  departments,  the  original  order  going  to  the 
assembling-room,  where  it  is  hung  over  a  collection-bin. 

''As  the  goods  arrive  from  each  department  they 
are  accompanied  by  the  carbon  copy  of  the  order, 
the  latter  being  placed  with  the  original  order.  Right 
there  on  the  spot,  the  items  are  called  to  a  bill-clerk, 
who  t\^es  the  bill  and  its  carbon,  including  prices. 
Another  clerk  then  checks  this  operation,  comparing 
the  merchandise  with  the  bill.  Note  that  the  billing- 
clerk  works  directly  from  the  goods,  not  from  the 
order. 

''The  bill  with  its  carbon  then  passes  to  the  office 
for  extension,  where  they  are  extended  and  footed  by 
calculating-machines.  One  operator  works  from  the 
original,  another  from  the  carbon.  The  two  results 
obtained  independently  must  agree. 

"Following  this,  the  original  is  mailed  to  the  cus- 
tomer, the  duplicate  being  filed. 

"In  former  years  we  had  the  extensions  and  totals 
figured  mentally.  But  we  find  that  machines  are  a 
good  investment.  They  save  wear  and  tear  on  the 
clerks,  are  more  accurate,  and  one  operator  with  a 
machine  will  do  the  work  of  three  clerks  figuring 
mentally." 

A  Penny  Saved  Is  a  Penny  Earned 

"Ignorance  of  cost  is  conducive  to  extravagance," 
said  a  cashier  whose  hobby  of  keeping  down  expenses 
is  worth  thousands  a  year  to  his  employers. 

"Consequently  I  am  constantly  reminding  our  force 

142 


FOR   THE    ACCOUNTANT 

of  the  exact  cost  of  each  individual  article  they  con- 
sume. 

''When  I  make  up  a  package  of  engraved  business 
cards  for  any  of  our  salesmen,  I  affix  to  it  a  typed  slip 
stating  that  each  card  cost  just  one  cent.  The  adoption 
of  this  policy  resulted  in  an  annual  saving  of  over  one 
hundred  dollars. 

''I  notified  our  typists  that  each  sheet  of  plain  paper 
cost  just  one-fifth  of  a  cent.  This  cut  our  stationery 
bills  several  hundred  dollars  a  year. 

"I  figured  out  the  cost  per  ten-minute  period  of 
power  for  each  electric  light  in  our  plant.  By  posting 
signs  about  containing  this  datum,  our  bills  were  re- 
duced substantially. 

"Rubber  bands,  pens,  pencils,  erasers — all  these 
items  I've  figured  individually;  and  our  staff  is  thor- 
oughly posted  on  the  cost  of  each  pen,  pencil,  etc. 
Equipped  with  this  datum,  they  instinctively  avoid 
waste.  It's  human  nature.  Translate  merchandise 
into  money,  and  the  desired  result  is  achieved.  They 
don't  require  urging.  The  previous  waste  of  supplies 
is  eliminated.  The  total  annual  sa\ing  amounts  to  a 
goodly  sum." 

"  Mark  a   Definite  Due  Date  on  Your  Bills — It  Means 
Quicker  Collections,"  says  this  Man 

''If  I  loaned  you  twenty  dollars  and  told  you  the 
date  that  I  expected  it  to  be  repaid,"  said  a  whole- 
saler, "which  would  make  the  deeper  impression — for 
me  to  say  that  I  wanted  the  money  repaid  within 

143 


MODERN    METHODS    IN    THE    OFFICE 

sixty  days,  or  that  I  expected  you  to  repay  it  January 
fifteenth?" 

''The  latter  statement,"  was  the  response. 

''Exactly.  And  that's  just  the  way  it's  worked  out 
in  my  business.  In  common  with  most  men,  I  always 
sold  my  product  on  thirty-  or  sixty-day  terms,  as 
the  case  might  be.  Like  every  one  else,  I  have  trouble 
at  times  with  collections. 

"One  day  it  occurred  to  me  that  if  each  bill  bore  the 
exact  date  that  payment  was  due,  and  that  it  was 
plainly  understood  at  the  time  of  the  sale  that  I  ex- 
pected the  money  on  that  date,  I'd  have  less  trouble 
with  chronic  interest-grabbers. 

"I  immediately  adopted  the  new  method  of  fea- 
turing on  each  bill  the  date  that  payment  was  due. 
The  results  were  gratifying  in  the  extreme.  Collections 
promptly  picked  up.  Possibly,  if  every  one  followed 
these  tactics,  the  effect  would  gradually  wear  off. 
But  in  my  case  the  device  has  proved  to  be  of  per- 
manent value.  I  figure  that  because  of  it  I  get  the 
preference  when  checks  are  being  drawn.  Thirty  and 
sixty  days  seem  rather  indefinite  periods.  January 
fifteenth  looms  sharp  and  clear  cut.  It  makes  a  dent 
in  the  purchaser's  consciousness  and  memory." 

A  Daily  Trial  Balance  Saves  Worry  and  Labor 

"Time  and  again  I've  had  trouble  in  obtaining  my 
monthly  trial  balance,"  said  a  bookkeeper.  "Upon 
one  occasion  I  had  to  work  four  hours  overtime  for 
three  nights  in  order  to  locate  a  slight  error. 

144 


FOR    THE    ACCOUNTANT 

"Finally  I  developed  a  simple  method  of  avoiding 
this  danger.  Now  I  take  a  daily  trial  balance.  As 
I  make  entries  on  my  ledger,  I  insert  a  marker  at  the 
item  involved,  the  end  of  the  marker  projecting  from 
the  edge  of  the  book. 

"After  completing  my  posting,  I  then  go  through 
the  day's  items,  totaling  the  debits  and  credits.  The 
amounts  when  added  should,  of  course,  equal  the 
difference  between  the  footings  at  the  opening  and 
closing  of  the  day  covered.  If  an  error  appears  it  is 
a  simple  matter  to  nail  it  on  the  spot.  But  by  my 
former  method,  the  error  might  have  occurred  any- 
where during  the  month's  business,  which  meant  a 
laborious  rechecking  of  past  entries.'* 

New  Ideas  in  Cost-keeping 

"The  installation  of  a  cost-keeping  system  will  not 
directly  accomplish  anything  in  the  way  of  increasing 
your  profits,"  said  a  cost  accountant.  "It  will  not 
increase  production  or  decrease  costs.  But  it  will  give 
you  information  in  such  form  that,  intelligently  utilized, 
you  can  take  steps  which  will  increase  your  profits. 
In  a  factory,  for  example,  it  will  inform  you  as  to  the 
time  expenditure  upon  each  operation  or  each  order; 
it  will  give  you  the  cost  of  each  unit  of  your  product; 
it  will  tell  just  where  and  in  just  what  stage  of  develop- 
ment each  unfinished  unit  is;  it  will  tell  what  propor- 
tion of  overhead  should  be  charged  to  each  department's 
product,  figured  both  by  the  hour  and  by  the  unit; 
it  will  do  the  same  in  connection  with  direct  labor  cost. 

145 


MODERN    METHODS    IN    THE    OFFICE 

It  will  post  you  accurately  on  the  proportions  of  non- 
productive to  productive  labor  and  inform  you  as  to 
what  the  former  is  devoted;  it  will  do  the  same  for 
materials;  it  will  give  you  the  hourly  operating  cost 
on  each  class  of  machines  and  on  the  various  depart- 
ments. It  will  show  whether  each  operation  is  in- 
creasing or  decreasing  in  cost,  and  whether  you  are 
making  goods  at  a  profit  or  at  a  loss;  and  if  you  are 
making  some  at  a  profit  and  others  at  a  loss,  it  will 
separate  the  sheep  from  the  wolves. 

"In  the  past  it  has  been  the  habit  of  cost  experts  to 
charge  the  product  with  the  entire  expense.  This  has 
resulted  in  fallacious  conclusions.  For  one  reason  or 
another  many  plants  are,  at  certain  times,  partially 
idle.  But  rent,  insurance,  taxes,  and  depreciation  keep 
right  on.  Now  the  total  of  these  expenses  charged 
against  the  product  may  very  well  seem  to  indicate 
that  its  manufacture  is  unprofitable.  As  a  matter  of 
fact,  it  may  be  highly  profitable  when  the  product  is 
debited  with  only  its  actual  and  legitimate  costs. 

''This  method  of  cost-keeping  results  in  condemning 
a  product  as  unprofitable  when  the  real  fault  lies  in  the 
management.  Often  the  addition  of  other  lines  to 
utilize  idle  machinery  or  space  will  result  in  placing 
the  business  on  a  profitable  basis. 

''I  know  of  one  concern,  now  employing  a  factory 
force  of  twenty-three  hundred,  whose  business  was 
originally  highly  seasonal.  Its  product  was  bought  by 
the  consumer  principally  at  Christmas  and  New- 
Year's.  This  meant  that  a  large  factory  was  uti- 
lized to  its  fullest  capacity  only  during  the  summer  and 

140 


FOR   THE    ACCOUNTANT 

autumn.  The  necessity  for  timeliness  in  the  models 
and  hnes  handled  rendered  it  unsafe  to  manufacture 
over  six  months  in  advance  of  the  demand.  The 
product  had  to  bear  the  heavy  expense  of  insiuance, 
taxes,  interest  on  the  investment,  etc.,  during  the 
first  six  months  of  the  year,  when  the  output  was  small. 
Certain  staple  lines  were  then  added  which  resulted  in 
keeping  the  plant  filled  with  business  the  year  round, 
and  promptly  the  records  showed  the  real  profit  on 
the  original  lines;  far  in  excess,  needless  to  say,  of 
that  previously  figured." 

A  Series  of  Collection  Letters 

"My  idea  of  the  proper  note  to  strike  in  a  series  of 
collection  letters  is  absolute  firmness  without  a  trace 
of  bullying,"  said  a  credit -man.  *'If  the  debtor  is 
shifty  and  inclined  to  be  a  beat,  a  firm  attitude  con- 
vinces him  that  he  must  pay  or  face  the  consequences; 
and  if  he  is  an  honest  man,  pressed  for  money,  the 
absence  of  a  bullying  tone  will  tend  to  hold  him  as  a 
future  customer  and  make  him  resolve  to  square  up 
as  soon  as  possible.  Waving  the  big  stick,  on  the 
other  hand,  arouses  resentment  and  often  delays 
payments. 

''It  is  well  to  start  with  the  polite  assumption  that 
the  item  has  been  overlooked;  then  gradually  to  in- 
crease the  pressure.  Here  is  a  series  which  I  have  found 
effectual.    The  first  letter  reads: 

We  note  that  our  account  against  you  of  $32.60  has  escaped 
your  attention.     As  our  terms  were  clearly  explained  to  you  at 
11  147 


MODERN    METHODS    IN    THE    OFFICE 

the  time  this  account  was  opened  and  the  time  limit  then  agreed 
upon  has  now  expired,  we  would  greatly  appreciate  it  if  you  would 
promptly  mail  us  a  check  for  the  amount  due. 

''This  letter  always  brings  a  considerable  number 
into  the  fold,  the  reason  being  that  it  reaches  many 
customers  who  are  merely  careless  and  who  are  only 
too  glad  to  be  reminded  of  their  delinquency.  Failing 
of  the  desired  effect,  a  second  letter  reading  as  follows 
is  despatched: 

On  the  Sth  we  wrote  you  about  yoiu*  overdue  account  of  $32.60, 
which  was,  even  at  that  time,  past  due.  It  was  with  the  exphcit 
imderstanding  that  your  account  would  be  settled  monthly  that  we 
extended  you  credit.  We  have  received  no  reply  to  our  last  letter 
and  we  must  now  insist  that  payment  in  full  be  made  promptly. 

''Many  perfectly  good  risks  fail  to  respond  even 
to  this  second  letter,  so  that  we  do  not  consider  it 
wise  to  resort  to  threat  of  suit  in  the  third  letter, 
which  is  phrased  thus: 

You  have  received  two  letters  from  us  asking  for  payment  for 
your  account  of  $32.60,  but  you  have  failed  to  reply.  Our  rule 
regarding  montlily  settlements,  which  was  explained  to  you  at 
the  time  the  account  was  opened,  is  inflexible. 

We  feel  that,  under  the  circumstances,  we  can  no  longer  extend 
you  credit,  and,  therefore,  must  notify  you  that  until  you  meet 
this  obligation  you  must  pay  cash  for  any  purchases.  If,  however, 
you  will  promptly  remit,  we  shall  we  glad  to  offer  you  your  former 
credit  privileges. 

"In  the  above  letter  a  real  reason  is  advanced  as  to 
why  it  is  to  the  debtor's  interest  to  pay.  This  letter 
always  brings  a  better  response  than  letter  Number  two. 

148 


FOR    THE    ACCOUNTANT 

"A  collector  then  calls  upon  the  man,  unless  he  is 
located  at  a  point  too  remote  to  render  this  practicable, 
and,  failing  of  action,  a  final  letter  threatening  suit 
is  mailed.    This  epistle  is  worded  as  follows: 

You  have  received  three  letters  from  us  regarding  j^our  overdue 
account  of  $32.60.  Also  our  collector  has  called  upon  you,  with 
no  result.  We  are  forced  to  the  conclusion  that  you  are  trying 
to  evade  payment  and  must,  therefore,  serve  notice  upon  you 
that  unless  payment  in  full,  or  at  least  part  payment,  is  made  be- 
fore the  5th,  we  shall  immediately  place  the  claim  in  our  attorney's 
hands  without  further  notice. 

"This  is  our  final  effort,  and  unless  the  debtor  pays 
he  finds  himself  involved  in  litigation  with  all  its  un- 
pleasant corollaries." 

What  a  Traffic-man  Discovered 

"The  worst  feature  connected  with  loss  occasioned 
by  ignorance  of  freight  rates  and  classifications  is  the 
fact  that  it  is  almost  always  a  steady  drain  on  the  busi- 
ness, extending  sometimes  over  a  period  of  many  years," 
said  a  traffic-man. 

"Take  this  concern, for  example.  When  I  joined  them 
I  found  that  ever  since  they  had  been  in  business  they 
had  been  shipping  their  product,  coffee,  as  'Bags 
roasted  coffee,'  under  a  third-class  rate. 

''The  bags  were  of  burlap,  lined  with  waterproof 
paper,  and  when  so  designated  the  shipment  com- 
manded a  fourth-class  rating. 

"I  wonder  how  many  thousands  of  dollars  are  lost 

149 


MODERN    METHODS    IN    THE    OFFICE 

daily   through   similar   lack   of   expert  knowledge   of 
traffic  rates  and  classifications?" 


Trade  Acceptances — a  Forward  Step 

''What  are  trade  acceptances?"  said  a  credit-man  in 
response  to  the  interviewer's  question.  ''Merely  a 
written  promise  to  pay  upon  a  certain  specified  date 
for  goods  received.  Their  general  adoption  by  the 
business  men  of  this  countiy  means  a  decided  forward 
step  in  our  methods  of  conducting  commercial  trans- 
actions. To  be  more  specific,  they  will,  according  to 
the  Cleveland  Association  of  Credit-men,  result  in  the 
following  advantages : 

1.  They  are  more  liquid  than  book  accounts. 

2.  Their  use  will  make  it  impossible  for  the  purchaser 
of  goods,  after  acceptance  of  a  draft,  to  take  an  un- 
authorized and  unearned  discount. 

3.  With  the  buyer's  obligation  in  the  form  of  an 
acceptance,  circulating  perhaps  in  several  markets,  he 
could  not  well  return  goods,  which  is  done  sometunes 
under  the  open  account  before  it  is  due. 

4.  Trade  acceptances  would  seek  the  market  where 
the  lowest  rates  prevail,  thus  placing  the  small  buyer's 
paper  on  an  equal  footing  with  that  of  the  large 
buyer. 

5.  It  would  put  an  end  to  the  bad  business  practice 
of  assigning  open  accounts. 

6.  It  would  make  the  purchaser  of  merchandise  more 

careful  in  his  buying. 

150 


FOR   THE    ACCOUNTANT 

7.  It  would  accord  with  the  desire  of  the  Federal 
Reserve  Board  and  conform  to  the  spirit  of  the  Federal 
Reserve  Act. 

8.  It  would  place  the  transaction  covered  by  an  ac- 
ceptance on  a  sound  business  basis  for  the  buyer,  the 
seller,  and  the  banker. 

9.  The  tendency  would  be  for  obligations  to  be  met 
promptly. 

10.  The  credit  facilities  of  many  firms  would  be 
greater  than  under  our  present  system. 

11.  Under  this  system  foreign  countries  have  built 
up  sound  financial  structures,  one  of  the  effects  of 
which  has  been  to  strengthen  their  prestige  in  the  mar- 
kets of  the  world.    We  should  do  the  same. 

12.  In  time  of  stringency  banks  will  discrimmate  m 
favor  of  self-liquidating  trade  acceptances  as  against 
paper  not  ehgible  for  rediscount,  and  possibly  against 
single-name  paper. 

"Naturally,  trade  acceptances  can  be  discounted  at 
a  much  lower  rate  than  ordinary  open  accounts.  As 
two-name  paper,  it  is  doubly  protected.  Furtheraiore, 
banks  can  loan  freely  upon  this  security  without  iso- 
lating the  law.  They  can  loan  but  ten  per  cent,  of 
theu-  capital  and  surplus  to  any  one  firm  on  smgle- 
name  paper. 

''This  ruling  does  not  apply  to  two-name  paper. 

''The  method  of  obtaining  a  trade  acceptance  is 
simplicity  itself.  It  means  merely  that  with  the 
invoice  the  seller  forwards  a  blank  reading  as 
follows : 

151 


MODERN    METHODS    IN    THE    OFFICE 


No 

Detroit,  Mich 19. . . 

After  date  oav  to 

or  order 

Dollars  S 

At 

(To  be  filled  in  by  Acceptor) 

The  obligation  of  the  acceptor  of  this  bill  arises  out  of  the  purchase  of  goods  from 
the  drawer. 


(Drawee) 


(Drawer) 


"Across  the  face  of  the  draft  the  customer  or  ac- 
ceptor stamps  or  writes  as  follows: 


03 


''In  a  word,  trade  acceptances  make  for  precision  in 
business  transactions;  save  money  for  the  seller,  and 
hence  indirectly,  in  prices  quoted,  for  the  buyer,  tend 
to  minimize  danger  of  disputes  and  litigation;  loosen 
up  credit,  which  means  that  a  dollar  will  earn  more 
money  for  more  people  and,  in  general,  increase  the 
efficiency  of  their  users." 

152 


FOR   THE   ACCOUNTANT 

A  Short  Cut  in  Accounting 

"A  certain  amount  of  red  tape  is  necessary  to  in- 
sure accuracy  in  accounting,"  said  a  bookkeeper,  re- 
cently, "but  it  should  be  reduced  to  a  minimum. 

"Here  is  a  method  which  reduces  labor  on  the  in- 
numerable petty-purchase  accounts  which  accumulate 
monthly,  many  of  which  represent  dealings  with  con- 
cerns who  may  never  require  another  entry. 

"First,  open  an  account  in  the  ledger  entitled  Petty 
Purchase  Account.  WTien  an  invoice  comes  through 
which  is  too  small  or  infrequent  in  character  to  war- 
rant the  opening  of  an  account  in  the  ledger,  enter  it 
in  the  regular  purchase  journal,  but  in  a  column  dis- 
tinct from  that  containing  items  to  be  posted  to  the 
ledger.  Stamp  or  mark  the  invoice  in  some  way  to 
distinguish  it  from  the  usual  type. 

"When  payment  is  due,  write  name  of  recipient  of 
check  in  check-register  and  designate  this  item  by 
the  initials  P.  P.  Keep  these  items  segregated  as  they 
pass  from  the  check-register  to  the  general  cash-book, 
just  as  in  the  case  of  the  purchase  journal.  This  wall 
prevent  their  passage  to  the  ledger  in  the  course  of 
the  regular  routine. 

"At  the  month's  wind-up,  total  the  P.  P.  column  in 
the  purchase  journal  and  post  it  on  the  credit  side  of 
the  petty-purchase  account.  Total  the  same  column 
in  the  general  cash-book  and  transfer  to  the  debit 
side  of  the  same  account. 

"This  plan  preserves  all  the  essential  data  in  easily 
accessible  form  and  results  in  the  elimination  of  the 

153 


MODERN    METHODS    IN    THE    OFFICE 

considerable  labor  involved  in  handling  a  large  num- 
ber of  insignificant  entries." 

Card  Ledgers — Time-  and  Labor -savers 

"I'll  have  to  ask  you  to  wait  a  few  minutes,  Mr. 
Condon,"  said  Miller,  assistant  bookkeeper  of  the 
Stewart  Company.  ''The  ledger  containing  your  ac- 
count is  in  use,  Mr.  Claflin,  another  customer,  asked 
to  have  his  account  made  up  only  a  few  minutes  ago." 

''I  can't  wait,"  was  the  impatient  response.  ''You 
can  mail  it  to-night,"  and  Condon  was  gone. 

"That's  the  second  time  that's  occurred  this  week," 
reflected  Miller.  ' '  I  wonder  if  there  isn't  some  method  of 
avoiding  the  difficulty?  I'll  have  to  do  a  Httle  reading  on 
the  sub j  ect  in  my  spare  moments.  Perhaps  a  practicable 
suggestion  will  get  the  raise  I've  been  looking  for." 

"Mr.  Reed,  if  I  could  install  a  system  here  that  would 
save  twenty-five  per  cent,  of  the  labor  involved  in  our 
accounting  department,  would  it  interest  you?"  IMiller 
was  addressing  the  general  manager  some  days  later. 
"Of  course  it  would.  What's  your  idea?" 
"Merely  to  substitute  a  card  system,"  was  the 
reply.  "I've  been  investigating  the  subject  and  find 
that  there's  no  comparison  between  the  two  methods. 
We  have  about  seven  thousand  accounts  kept  in 
seventeen  ledgers.  Fifteen  drawers  will  accommodate 
a  card  system.  We  can  arrange  them  either  alpha- 
betically or  geographically,  though  I'd  recommend  the 
latter  plan.     This  will  help  the  sales  manager  in  ana- 

154 


FOR   THE    ACCOUNTANT 

lyzing  returns  and  conditions  in  certain  districts.  Here 
are  a  few  of  the  advantages : 

"At  present  we  clerks  are  often  hampered  in  our 
work  by  the  head  bookkeeper's  needing  the  ledger 
upon  which  we're  at  work.  A  card  system  obviates 
that  difficulty.  Furthermore,  with  cards  our  system 
would  be  much  more  flexible;  no  dead  material  would 
accumulate,  as  it  does  in  our  books.  In  case  of  a  hurry- 
up  job  on  certain  accounts,  the  work  could  be  split 
up  among  several  clerks  if  we  used  cards.  With  books 
this  is  impossible."  And  for  some  minutes  Miller  con- 
tinued to  demonstrate  the  advantages  of  the  new  plan. 

"Miller,  it's  worth  a  trial,"  said  Reed,  finally.  "And 
I'll  assign  you  the  task  of  working  out  all  the  details 
and  superintending  the  transfer.  Make  a  thorough 
study  of  all  the  systems  in  use  and  select  the  one  best 
adapted  to  our  purpose." 

Within  two  weeks  the  new  plan  was  in  operation  and 
so  much  time  was  saved  that  several  of  the  clerks 
were  taken  from  the  department  and  shifted  to  the 
warehouse,  where  a  demand  for  clerical  labor  existed. 
The  net  saving  in  salaries  amounted  to  a  substantial 
weekly  sum.  And  the  following  Saturday  Miller  found 
that  his  envelope  contained  twenty-five  dollars  in- 
stead of  the  usual  fifteen. 

"That's  all  right.  Miller,"  replied  Reed,  as  the 
young  clerk  thanked  him.  "You've  saved  the  house 
a  good  deal  more  than  ten  dollars  a  week.  Keep  your 
eyes  open  for  further  improvements.  You'll  find  that 
we  appreciate  youT  interest." 

155 


V 

TOWARD  EFFICIENCY 

A  Chairless  Office  Conserves  this  Man's  Time 

"A  very  simple  plan  has  enabled  me  to  save  an  aver- 
age of  a  half -hour  a  day,"  said  the  advertising  manager 
of  a  department  store. 

''Because  of  the  nature  of  my  work  I  have  to  grant 
interviews  to  a  good  many  advertising  solicitors.  This 
consumes  much  time. 

"Now,  in  my  opinion,  five  minutes  is  ample  time 
in  which  to  state  a  proposition.  But  the  average  sales- 
man or  solicitor  will  sink  into  a  chair  and  plan  on 
talking  for  a  half-hour.  I  used  to  keep  a  chair  beside 
my  desk  for  the  use  of  callers.  One  day,  after  an  elo- 
quent solicitor  had  consumed  nearly  an  hour  of  my 
time,  I  concluded  that  I  would  adopt  radical  measures. 

"I  excluded  all  but  two  chairs  from  my  office.  I 
now  have  one  for  myself  and  one  for  my  stenographer. 
When  a  caller  enters  I  arise  and  tactfully  steer  him 
over  to  the  tall  bookkeeper's  desk  upon  which  I  lay 
out  my  dummies.  We  lean  on  that  support  and  I 
listen  to  his  story. 

"I  find  that,  lacking  a  chair,  the  solicitors  are  con- 

156 


TOWARD    EFFICIENCY 

tent  to  state  their  errand  and  leave.  The  mere  fact 
that  they  are  standing  rather  than  sitting  seems  to 
suggest  a  short  interview. 

''Chairs  are  responsible  for  a  great  deal  of  wasted 
time.  My  estimate  that  their  abolition  in  my  office 
saves  me  a  half-horn*  daily  is  conservative." 

"  Don't  Lock  Up  Your  Desk,"  is  a  Rule  of  this  Office 

*'We  have  one  rule  here  which  we  expect  to  be  in- 
flexibly observed/'  remarked  the  office  manager  to 
the  new  telephone-order  clerk,  "and  it  apphes  from 
the  president  down. 

''In  your  desk  is  one  drawer  for  personal  effects. 
Never  put  any  documents  relating  to  our  business  into 
it.  Keep  it  locked,  if  you  prefer,  but  never  lock  the 
other  drawers.  Before  this  rule  was  enacted,  much 
trouble  arose  from  absences  due  to  illness.  Often 
drawers  containing  matter  requiring  immediate  at- 
tention would  be  found  locked  up.  The  key  was  at 
the  employee's  home.  It  meant  bother  and  expense 
due  to  the  necessity  of  breaking  open  the  desk.  Hence 
the  need  of  leaving  your  desk  unlocked  when  you  leave 
in  the  evening." 

Saving  Time  in  Figuring  Postage  on  Parcel  Post 

The  following  table,  published  in  Office  Efficiency,  a 

house  organ  of  The  Art  Metal  Construction  Company, 

of  Jamestown,  New  York,  should  save  time  in  the 

mailing  department: 

157 


MODERN    METHODS    IN    THE    OFFICE 

In  this  table  you  use  as  a  basis  the  number  of  pounds  in  eacli  case. 
To  find  postage  on  a  package  to  1st  or  2d  zone  simply  add  to 
the  number  of  pounds  4  cents. 

3d  zone,  multiply  nmnbcr  of  pounds  by  2  and  add  4  cents. 

4th  zone,  multiply  by  4  and  add  3  cents. 

5th,  multiply  by  6  and  add  2  cents. 

6th,  multiply  by  8  and  add  1  cent. 

7th,  multipl}'  by  10  and  add  1  cent. 

8th,  multiply  by  12. 


Reducing  Freight  Charges 

*'If  I  had  the  money  which  is  wasted  annually  in 
this  country  through  excess  freight  charges  arising 
from  ignorance  and  carelessness  in  packing,  I'd  retire 
on  my  income,"  said  a  manufacturer,  recently. 

''Goods  which  could  well  be  shipped  in  boxes  or 
barrels  are  packed  in  crates,  which  pushes  them  into 
a  higher  classification;  products  which  could  go  in 
crates  often  are  shipped  in  sacks,  with  the  same  result. 

"I  knew  one  hea\y  shipper  who  used  to  use  any- 
thing which  was  convenient  for  a  container.  One  day 
he  forwarded  a  shipment  of  the  same  material  packed 
by  three  different  methods — sacks,  boxes,  and  barrels. 
Happening  to  study  his  freight  bill  closely,  he  learned 
that  he  had  been  charged  first-class  rates  for  his  boxes, 
third-class  for  his  sacks,  and  fifth-class  for  his  barrels. 
This  opened  his  eyes;  he  proceeded  to  make  a  study 
of  his  shipping  problem,  with  the  result  that  the  product 
of  his  plant  is  now  shipped  in  the  one  best  and  cheapest 
form. 

"As  a  general  rule,  the  more  substantial  the  con- 

158 


TOWARD    EFFICIENCY 

tainer,  the  lower  or  less  expensive  the  classification. 
This  is  to  penalize  the  man  whose  methods  of  packing 
are  likely  to  result  in  damages  against  the  railroad. 
But  it  does  not  always  apply.  So  weird  are  some  of  the 
rulings  that,  in  shipping  a  desk  across  the  country,  I 
discovered  that  to  put  several  pounds  of  cobblestones  in 
the  drawers  brought  the  shipment  into  a  weight  classi- 
fication which  saved  several  dollars  in  freight  charges. 

''Very  slight  modifications  in  the  style  of  packing 
often  effect  substantial  savings.  Wooden  tops  on  bar- 
rels instead  of  cloth  tops  shift  most  commodities  at 
least  one  class.  On  some  non-perishable  products 
shipped  in  barrels  the  absence  of  a  top  does  not  carry 
a  penalty.  Goods  shipped  knocked  down  invariably 
command  a  lower  rate  than  those  set  up. 

''For  years  a  certain  manufacturer  of  shafting  shipped 
his  product  with  couplers,  pulleys,  and  hangers  at- 
tached. It  was  charged  at  first-class  rates.  A  new 
shipper  reduced  his  classification  to  fourth-class  merely 
by  shipping  these  goods  non-assembled. 

"The  rulings  issued  by  the  railroads  are  admittedly 
intricate  and  difficult  to  grasp.  But  a  patient  study 
of  them  brings  its  reward  in  the  shape  of  worth-while 
savings.  And  I  don't  know  of  any  easier  method  of 
saving  money  than  to  reduce  your  shipping  charges 
by  ascertaining  the  one  best  and  cheapest  method  of 
packing." 

The  Tendency  of  the  Times 

"It  is  a  question  whether  the  American  public  has 
yet  fully  realized  the  extent  of  the  vast  economic 

159 


MODERN    METHODS    IN    THE    OFFICE 

changes  which  have  been  effected  m  our  national  Hfe 
during  the  past  generation,"  remarked  a  prominent 
business  man,  recently.  ''The  scale  upon  which  busi- 
ness is  done  has  so  increased  that  a  business  man  of 
the  old  school  could  not  hope  to  cope  with  modem 
conditions. 

''For  one  thing,  in  the  lines  of  business  which  have 
been  concentrated  into  great  units,  and  which  are 
owned  by  thousands  of  stockholders,  personal  contact 
between  employer  and  employee  has  disappeared.  The 
entire  responsibility  for  a  great  corporation's  adminis- 
tration devolves  upon  the  body  of  men  known  as  the 
management.  The  vast  majority  of  the  stockholders 
have  utterly  no  knowledge  as  to  the  conduct  of  the 
business.  They  invest  their  money,  draw  their  divi- 
dends, if  fortunate,  and  let  it  go  at  that.  No  one  knows 
as  to  just  what  extent  an  industry  can  be  expanded 
to  attain  the  maximum  of  efficiency.  If  split  up  into 
small  competing  units,  the  vast  waste  attendant  upon 
duplication  of  plants,  sales  organizations,  and  similar 
necessary  factors  renders  them  uneconomical  from  the 
viewpoint  of  the  community.  If,  on  the  other  hand, 
a  business,  through  crushing  or  purchasing  competi- 
tors, becomes  too  lar^e,  it  becomes  unwieldy  and  hence 
is  wastefully  administered.  There  is  no  question  but 
that  the  Morgan  interests,  for  instance,  had  at  the  time 
of  J.  P.  Morgan's  death  become  too  large  for  efficient 
administration.  The  Roman  Empire,  to  go  back  some 
distance,  was  another  instance  of  an  enterprise  which 
became  too  large  to  longer  function. 

"With  the  expansion  of  modem  business  has  come 

160 


TOWARD    EFFICIENCY 

specialization  as  a  natural  corollary.  The  small  busi- 
ness cannot  afford  to  keep  many  specialists  upon  its 
pay-roll;   the  large  one  finds  it  a  good  investment. 

"In  looking  over  a  prospectus  issued  by  a  commercial 
correspondence  school,  recently,  I  was  interested  to 
note  the  plan  of  subdivision  followed  in  analyzing 
modem  business.    It  ran  somewhat  as  follows: 


1. 

Production 

4.  Finance 

a.  Organization. 

a.  Banking    Principles 

6.  Management. 

and  Practice. 
6.  Foreign  Exchange. 

2. 

Marketing 

c.  Investment  and 
Speculation. 

a.  Salesmanship. 

d.  Insurance. 

h.  Advertising. 

e.  Real  Estate. 

c.  Correspondence. 

d.  Credits. 

5.  Commercial  Law 

e.  Traffic. 

3. 

Accounting 

a.  Auditing. 
h.  Cost  Finding. 

"The  extent  to  which  specialization  has  been  carried 
in  these  various  departments  of  business  is  amazing. 
And  the  end  is  not  yet.  Take  the  single  item  of  ad- 
vertising, for  example.  Twenty-five  years  ago  the 
advertising-man  was  merely  a  space  broker — a  sort  of 
retailer  of  space  which  he  purchased  at  wholesale. 
To-day  he  must  combine  within  his  organization  a 
complete  knowledge  of  the  various  channels  of  distri- 

161 


MODERN    METHODS    IN    THE    OFFICE 

bution,  a  grasp  of  copy  and  layout,  an  understanding 
of  sales  management,  a  knowledge  of  media  and  their 
rates,  of  trade-marks  and  trade-mark  law — in  short, 
the  ability  to  plan  and  execute  a  campaign  complete 
in  every  detail  for  the  successful  marketing  of  any 
product  which  may  be  presented  for  his  opinion.  Nat- 
urally, it  has  been  found  profitable  to  specialize. 
One  man,  located  in  New  York,  is  recognized  as  au 
authority  upon  media  and  their  circulations.  Other 
members  of  the  profession  consult  him  on  this  feature 
of  a  projected  campaign.  Other  advertising-men  are 
mail-order  specialists.  Others  concentrate  upon  sales 
letters  and  mailing  campaigns.  Still  others  are  tech- 
nical advertisers  and  handle  only  machinery  and  other 
products  designed  for  use  in  manufacturing  plants. 
An  entirely  separate  branch  of  the  profession  is  that 
of  department-store  advertising. 

''Similarly,  among  wage-earners  you  find  the  same 
tendency.  Factory  workers  now  perform  but  a  single 
operation  in  the  manufacture  of  the  plant's  product. 

"All  this,  I  suppose,  makes  for  community  efficiency. 
But  does  it  make  for  individual  human  efficiency?  In 
the  long  run,  won't  we  pay  a  price  for  this  generation's 
amazing  productive  power?  Doesn't  the  mental  vi- 
tality of  the  people  as  a  whole  suffer  from  this  narrow- 
ing specialization?  Doesn't  it  stifle  initiative,  resource- 
fulness, and  tend  to  discourage  versatility?  Well,  it's 
a  great  age.  We're  plunging  ahead  at  a  terrific  speed 
toward  some  unseen  goal.  There  have  been  more 
fundamental  and  far-reaching  changes  in  my  life- 
time than  in  the  ten   generations  that  preceded  it. 

1G2 


TOWARD    EFFICIENCY 

I'd  like  just  a  squint  at  the  world  in  nineteen  seventy- 
five." 

The  Value  of  Business  Reading 

**In  hiring  men  for  positions  of  responsibility,"  said 
an  executive  of  a  large  corporation,  "one  of  the  points 
upon  which  I  demand  information  is  the  extent  of 
the  applicant's  reading  along  business  lines.  The  re- 
sponse goes  far  in  assigning  the  man  a  rating  in  my 
estimation.  Lack  of  time  is  a  reason  often  proffered 
to  excuse  ignorance  of  the  contemporaneous  literature 
of  one's  chosen  field  of  endeavor.  A  man  should 
make  time  to  read  in  this  direction.  Clip  a  few  minutes 
daily  from  your  perusal  of  the  sporting  page  and  devote 
this  period  to  solid  business  reading,  and  the  result 
will  soon  show  in  your  pay-envelope." 

''A  year  or  two  ago  I  met  a  man  who,  at  that  time, 
ranked  as  the  best  salesman  in  his  organization.  He 
represented  a  publishing-concern  which  operates  two 
well-known  magazines  and  which  also  issues  many 
books.  Among  its  hundreds  of  salesmen,  covering 
every  state  in  the  Union,  remember,  this  man,  by  the 
actual  evidence  of  tangible  results,  stood  first. 

'''How  do  you  explain  your  success?'  I  inquired. 
'Are  you  a  natural  salesman?' 

'"Do  I  look  Hke  one?'  he  asked,  with  a  laugh. 
'Wouldn't  you  pick  me  out  of  a  crowd  as  a  book- 
keeper, drug-clerk,  or  representative  of  some  equally 
inactive  vocation?' 

'"Yes,  I  would,'  I  admitted.    As  a  matter  of  fact, 

12  163 


MODERN    METHODS    IN    THE    OFFICE 

he  was  a  lean,  bespectacled,  academic-looking  indi- 
vidual, without  a  spark  of  that  magnetism  and  super- 
abundant vitality  which  is  supposed  to  accompany 
phenomenal  sales  talent. 

'"No,  I'm  not  a  natural  salesman,'  he  continued. 
'I'll  tell  you  about  my  experience. 

'"About  eight  years  ago  I  concluded  to  emerge  from 
behind  the  counter  and  to  take  a  whirl  at  seUing.  I 
started  out  from  St.  Louis  with  a  line  of  merchandise. 
I  hadn't  been  out  over  two  weeks  when  it  was  borne 
in  on  me  that  I  couldn't  sell  silver  dollars  for  nickels. 
A  more  pathetic  imitation  of  a  salesman  never  un- 
packed a  grip. 

'"One  evening,  in  the  lobby  of  a  hotel  in  a  little 
Kansas  town,  I  ran  into  an  old  school  friend.  It 
developed  that  he  was  a  real  salesman.  He  asked  me 
how  things  were  going  and  I  told  the  truth — that  I 
was  a  flat  failure  and  was  about  to  take  the  morning 
train  to  St.  Louis  and  start  rustling  another  behind- 
the-counter  job. 

"'My  friend  suggested  that  I  stick  it  out  a  week 
longer,  and  said  that,  ridiculous  as  it  might  sound, 
he  had  learned  to  sell  goods  from  a  book.  He  pro- 
duced it  from  his  grip  and  presented  it  to  me.  It 
dealt  with  the  theory  and  practice  of  salesmanship 
and  gave  many  actual  examples  of  right  and  wrong 
methods. 

'"That  night  I  sat  up  till  the  small  hours  perusing 
the  volume.  I  began  to  pluck  up  courage;  I  saw  that 
my  attack  had  been  of  the  hit-or-miss  type,  poorly 
planned.     Next  day  I  started  out  with  renewed  nerve 

164 


TOWARD    EFFICIENCY 

and  actually  closed  a  sale  which  showed  me  over 
thirty  dollars'  commission.  That  evening  I  once  more 
read  the  book.  The  following  day  I  moved  on  to  an- 
other town  and  once  more  I  made  a  good  sale. 

'''That  was  the  beginning  of  my  career  as  a  sales- 
man. It's  by  applying  the  principles  that  I  gained 
from  a  few  hours'  reading  that  I've  attained  the  posi- 
tion I  now  occupy.' 

''That's  just  one  case  of  the  value  of  a  little  reading 
along  business  lines,"  continued  the  executive. 

"The  other  day  I  was  talking  to  the  sales  manager 
of  a  corporation  which  has  netted  forty  thousand  dol- 
lars in  the  past  two  years  from  applying  an  idea  sug- 
gested by  the  sales  manager.  He  got  the  conception 
from  an  article  in  a  business  magazine. 

"The  point  is  right  here.  In  the  course  of,  say,  a 
year's  actual  experience,  you  soak  in  a  certain  amount 
of  information.  But  your  information  is  limited  to 
your  own  experience.  By  a  sj^stematic  course  of  read- 
ing, however,  you  profit  by  the  experience  of  scores  of 
business  men.  In  other  words,  you  can  gain  a  vast 
fund  of  experience  vicariously.  It's  the  one  sure  and 
certain  get-rich-quick  scheme.  For  in  the  bitter  com- 
petitive struggle  for  existence,  certainly  the  man 
equipped  with  the  greater  fund  of  knowledge  has  an 
advantage  over  his  less-well-informed  adversaries.  By 
reading  one  gets  wise  quick,  hence  it  logically  follows 
that  he  stands  a  better  opportunity  to  get  rich  quick. 
Wliat  is  a  salaried  man  paid  for?  Knowledge,  prin- 
cipally.    Increase  your  knowledge  and  you  increase 

1G5 


MODERN    METHODS    IN    THE    OFFICE 

the   contents   of  your  pay-envelope;    that's   sunple, 
isn't  it? 

"Not  long  ago  the  expansion  of  our  business  forced 
us  to  erect  a  new  building.  We  engaged  a  competent 
architect;  got  in  touch  with  an  insm-ance  expert  and 
a  combustion  engineer  and  thought  that  we  were  all 
primed  to  go  ahead.  At  this  juncture  a  new  man  in 
our  organization  requested  a  hearing. 

'''Gentlemen,  you've  got  the  wrong  idea/  he  in- 
formed us.  'The  latest  method  of  erecting  an  indus- 
trial structure  demands  the  consultation  of  efficiency 
experts.  You  people  are  going  ahead  hit-or-miss. 
After  you've  built  a  rectangular  structure,  you'll  then 
proceed  to  arrange  your  departments  as  economically 
as  possible  within  the  limits  of  that  constant  factor, 
the  building. 

"'The  proper  method  is  to  plan  the  relation  of  the 
departments  first;  then  to  erect  a  building  which  will 
contain  them.  Get  in  touch  with  the  Blank  organiza- 
tion. They  operate  by  constructing  miniature  models. 
When  they've  completed  an  analysis  of  your  problem, 
you  can  then  call  in  your  architect,  combustion  en- 
gineer, insurance  man,  etc' 

"We  followed  this  man's  instructions,  with  the  result 
that  our  new  building  will  not  in  any  degree  resemble 
our  original  plan.  And  to  say  that  a  saving  of  seventy- 
five  thousand  dollars  annually  will  be  effected  is  no 
overstatement. 

"It  was  from  an  article  in  a  business  magazine  that 
the  man  who  saved  us  this  sum  derived  his  informa- 
tion." 

166 


TOWARD    EFFICIENCY 

"  Don't  Carry  Your  Coals  to  Newcastle,"  says  this 
Successful  Young  Executive 

"Ability  is  purely  relative,"  said  the  successful 
young  sales  manager  of  a  staid  old  New  York  whole- 
sale house.  ''And  it's  to  my  reaUzation  of  that  fact 
that  I  date  my  success. 

''I  think  that  it's  in  one  of  Rider  Haggard's  novels 
that  an  Englishman  among  the  natives  of  Africa  built 
a  reputation  as  a  medicine-man  because  he  foretold  an 
eclipse  of  the  sun.    Relatively,  you  see,  he  was  a  wizard. 

"Selfridge  scored  a  great  success  by  establishing  an 
American  department  store  in  London.  Among  the 
conservative  Englishmen  he  shone  as  a  veritable  pio- 
neer of  progress.    Another  case  of  relativity. 

"A  few  years  ago  a  certain  bank  officer  accepted  a 
position  as  president  of  a  conservative  old  wholesale 
house.  The  reforms  which  he  instituted,  reforms 
the  need  of  which  were  obvious  to  any  live  busi- 
ness man  of  the  present  generation,  resulted  in  the 
saving  of  hundreds  of  thousands  annually.  His 
salary  is  one  hundred  thousand  dollars  a  year. 
Does  he  earn  it?  Yes  and  no.  Principally  no. 
He  has  been  worth  that  sum  in  the  particular  posi- 
tion which  he  fills.  But  the  point  is  that  no  room 
for  such  sweeping  reforms  should  have  existed.  Dry 
rot  had  set  in  and  the  house  was  moving  forward 
upon  the  impetus  gained  from  years  of  former  pros- 
perity. Any  ten-thousand-dollar-a-year  man  could 
have  achieved  equal  results.     But  in  relation  to  his 

business  environment,  the  banker  was  a  real  Napoleon. 

167 


MODERN    METHODS    IN   THE    OFFICE 

Hence  his  present  salary.  Columns  of  adulatory  liter- 
ature have  been  written  regarding  his  achievements. 
It  was  from  reading  about  this  case  that  I  awoke  to  a 
realizing  sense  of  the  truth  of  this  theory  of  the  rela- 
tivity of  ability. 

"I  had  been  bucking  the  business  battle  for  about 
ten  years.  I  started  as  stock-boy  in  a  live  young 
wholesale  dry-goods  house.  After  a  year  or  two  of 
this  apprenticeship  I  became  inside  salesman;  later  I 
was  given  an  outside  territory.  At  twenty-six  I  found 
myself  assistant  sales  manager,  with  the  advertising 
and  correspondence  considered  as  being  particularly 
my  province. 

''By  nature  I  am  strong  on  the  constructive  or 
business  getting  end  of  commercial  life,  but  weak  on 
the  conservation  end.  Therefore  I  made  a  deliberate 
study  of  this  feature.  I  read  deeply  on  the  findings 
and  methods  of  efficiency  experts,  and  finally  took  a 
course  in  scientific  management.  This  involved  methods 
of  payment  as  well  as  actual  waste  elimination.  My 
ideas,  when  applied,  resulted  in  substantial  savings;  but 
although,  if  I  may  say  so,  I  was  a  competent  business 
man,  I  was  surrounded  by  a  corps  of  live  wires.  Our 
house  was  reputed  to  be  the  most  enterprising  in  the 
trade.    No  particular  indi\udual  shone  by  contrast. 

''Then  came  my  conclusion  to  tie  up  with  some  old 
house  of  the  type  which  the  banker  had  discovered. 
I  had  not  far  to  seek.  The  concern  I'm  now  connected 
with  was  established  back  in  the  fifties.  For  the  past 
thirty  years  it  has  been  losing  ground.  Not  actually, 
you  understand  (its  volume  of  business  has  gradually 

168 


TOWARD    EFFICIENCY 

increased),  but  in  comparison  with  its  competitors. 
All  its  executives  were  men  of  from  fifty-five  to  seventy- 
five  years  of  age,  and  the  house  was  suffering  from  in- 
breeding. We  hear  a  lot  nowadays  about  promotion 
from  the  ranks.  But  this  can  be  overdone.  Outside 
blood  is  occasionally  necessary.  Conceive  a  big  whole- 
sale house  to-day  which  never  runs  a  line  of  adver- 
tising copy  in  its  trade  media.  That's  the  condition 
I  found  here.  No  mailing  campaigns  were  conducted. 
No  samples  were  ever  distributed.  No  measures  were 
used  for  obtaining  business  excepting  the  mainte- 
nance of  an  inadequate  sales  force. 

''And  the  waste  and  lost  motion  in  handling  and 
displaying  goods  due  to  archaic  fixtures  and  a  policy 
of  laissez-faire  resulted  in  the  loss  of  large  sums  an- 
nually. Even  the  credit  department  was  feebly  ad- 
ministered. But  so  great  is  the  power  of  good-will 
and  prestige  that  the  volume  of  sales  far  surpassed 
that  yet  attained  by  the  house  with  which  I  got  my 
training. 

''Well,  to  make  a  long  story  short,  I  succeeded  in 
jimmying  an  entrance  here.  I  took  a  subordinate 
position  at  a  small  salary.  Then  I  began  to  make  the 
fur  fly.  At  first  I  was  confronted  with  a  great  deal  of 
opposition.  But  as  reform  after  reform  showed  tan- 
gible results  in  dollars  and  cents,  I  was  given  a  freer 
hand. 

"In  one  department  alone,  that  of  traffic  and  rout- 
ing of  freight,  an  expert  whom  I  engaged  recovered 
ten  times  his  fee  from  overcharges.  I  installed  and 
developed   a   mail-order   department.     We   issued   a 

1G9 


MODERN    METHODS    IN    THE    OFFICE 

catalogue.  We  began  to  support  our  traveling-men 
with  aggressive  mailing  campaigns.  Liberal  use  of  trade 
media  in  launching  trade-marked  specialties  brought 
good  results.  Younger  salesmen  were  employed;  the 
superannuated  relics  I  found  here,  pensioned. 

'^  Analysis  of  our  territory  displayed  amazing  incon- 
sistencies in  the  demand  for  various  products.  Study 
of  the  records  indicated  unsuspected  reasons  for  this 
condition,  and  suggested  methods  of  bolstering  the  sales 
of  stickers.  Graphs  are  now  used  extensively  through- 
out the  establishment.  The  old-timers  at  first  regarded 
them  suspiciously  as  newfangled  tomfoolery.  But  they 
soon  learned  to  interpret  them. 

''In  a  word,  I  merely  apphed  here  the  methods  in 
vogue  in  the  concern  with  which  I  was  previously 
connected.  And  because,  backed  by  the  prestige  of 
this  old  house,  the  results  have  staggered  the  pro- 
prietors, it  was  not  long  before  I  was  appointed  sales 
manager  at  a  salary  running  well  into  five  figures  an- 
nually— over  twice  what  I  received  in  my  former 
position. 

''Here  I  shine  as  the  last  word  in  modern  efficiency. 
Just  a  case  of  relativity,  you  see.  Too  many  able  men 
are  buried  because  they've  carried  their  coals  to  New- 
castle; I  carried  mine  to  Greenland." 

Foresight — Its  Value  in  Launching  New  Enterprises 

"I  was  a  comparatively  young  man  when  I  learned 
from  harsh  experience  the  value  of  analysis  as  applied 
to  the  field  for  a  new  product,"  said  a  business  man. 

170 


TOWARD    EFFICIENCY 

"I  was  approached  by  the  inventor  of  a  rope- 
measuring  machine  with  the  purpose  of  inducing  me 
to  supply  a  portion  of  the  necessary  capital.  A  me- 
chanical engineer  who  at  my  request  passed  upon  the 
merit  of  practicability  reported  that  it  was  a  remark- 
able invention — feasible,  practicable,  thoroughly  per- 
fected. I  then  advanced  ten  thousand  dollars  for  a 
substantial  interest.  Upon  placing  our  machine  upon 
the  market,  we  discovered  that  although  eagerly  pur- 
chased by  the  concerns  to  whom  it  was  useful,  the 
number  of  these  was  so  small  that  there  was  no  hope 
of  establishing  a  sound,  profitable  business.  In  other 
words,  the  market  was  too  limited  to  warrant  the  ex- 
pense of  manufacture.  Every  one  concerned  in  the 
affair  lost  money.  Intelligent  analysis  would  have 
enabled  me  to  avoid  making  this  mistake. 

''Thousands  of  similar  instances  could  be  cited. 
Only  a  few  weeks  ago  the  inventor  of  an  automatic 
device  for  registering  the  thickness  or,  technically,  the 
weight,  of  wrapping-paper  showed  me  his  machine  in 
operation. 

'''That  ought  to  be  bringing  in  a  comfortable  in- 
come,' I  remarked. 

"  He  laughed. 

"'It's  merely  an  interesting  toy,'  was  the  reply. 
'There's  no  real  demand  for  it.  Any  good  paper  sales- 
man can  tell  the  weight  of  paper  through  pinching  it 
between  his  thumb  and  forefinger.  This  has  been  on 
the  market  for  several  years  now.  I've  received 
barely  enough  to  meet  my  expenses  in  perfecting  it.' 

"The  nature  of  many  a  new  enterprise  involves  a 

171 


MODERN    METHODS    IN    THE    OFFICE 

certain  unavoidable  element  of  risk.  But  in  many 
cases  unnecessary  risks  are  taken.  For  example,  one 
would  say  offhand  that  many  thousands  of  dollars 
must  be  ventured  in  establishing  a  new  magazine. 
But  an  acquaintance  of  mine  had  one  securely  founded 
before  risking  more  than  a  few  dollars.  His  method 
was  simple.  He  saw  an  opportunity  for  launching  a 
new  trade  medium;  the  field  was  unoccupied;  it 
seemed  like  a  dead  certainty  that  a  potential  demand 
existed. 

'^  Instead,  however,  of  publishing  an  initial  issue,  he 
issued  a  prospectus  outlining  his  plan  in  detail  and 
mailed  it,  accompanied  by  a  letter  containing  a  special 
introductory  reduced-price  subscription  offer  to  a  list 
of  logical  prospects.  He  promptly  received  several 
thousand  responses  with  remittance  inclosed.  Thus 
he  had  a  solid  subscription  list  guaranteed  before  he 
purchased  a  pound  of  paper  or  set  a  line  of  type. 
Furthermore,  with  the  backing  of  this  subscription 
list  he  was  enabled  to  secure  a  great  deal  of  adver- 
tising for  his  first  issue.  'Be  sure  you're  right,  then 
go  ahead,'  is  the  policy  by  which  he  operates. 

"This  man  appropriated  this  idea  from  the  method 
pursued  by  a  big  publisher  of  technical  books.  When- 
ever an  idea  for  a  new  volume  occurs  to  this  pub- 
lisher, he  sends  out  several  thousand  letters  to 
selected  lists,  soliciting  orders  for  it.  When  the 
money  arrives,  he  promptly  returns  it  with  the  ex- 
planation that  the  book  has  been  delayed  in  the 
press.  If  the  percentage  of  returns  indicates  that 
the  volume  will  sell  readily,  he  then  goes  ahead  with 

172 


TOWARD    EFFICIENCY 

its  preparation.      But  if  the  evidence  is  adverse,  he 
merely  abandons  the  plan. 

''All  of  us  are  gifted  with  hindsight.  It's  the  man 
with  that  rare  quality,  foresight,  who  succeeds.  And 
foresight  is  merely  a  synonym  for  common  sense." 

How  One  Man  Secured  a  Promotion 

"Often  a  man  will  find  himself  caught  in  an  eddy 
of  the  promotion  stream,"  remarked  the  advertising 
manager  of  a  great  department  store,  "and  it  seems 
as  though  it  were  well-nigh  impossible  to  extricate 
himself.  MilUons  of  men  are  marking  time  to-day, 
waiting  for  the  man  above  them  to  be  promoted  or 
to  leave.  And,  in  most  cases,  they  seem  to  feel  that 
there  is  nothing  to  be  done  about  it. 

"I  believe  in  shaping  circumstances  rather  than  in 
permitting  circumstances  to  shape  me.  Every  man 
is  more  or  less  the  victim  of  events;  even  Napoleon 
finally  fell.  But  that  does  not  prevent  me  from  putting 
my  shoulder  to  the  wheel  of  fate  and  trying  to  do  my 
part  in  speeding  up  its  revolutions. 

"Some  years  ago  I  found  myself  side-tracked.  I  was 
employed  as  assistant  to  the  advertising  manager  of 
a  medium-sized  store.  Because  I  lacked  the  title  of 
'manager,'  it  was  difficult  for  me  to  secure  another  job 
which  would  be  any  better  than  the  one  I  held.  My 
normal  line  of  advancement,  therefore,  was  to  step 
into  my  superior's  shoes  when  he  left.  But  that's 
where  the  rub  came.  Packard,  my  boss,  was  a  very 
able  man,  but  he  lacked  self-confidence.    He  was  well 

173 


MODERN    METHODS    IN    THE    OFFICE 

equipped  to  hold  a  bigger  job,  but  did  not  realize  it. 
Consequently  he  was  content  to  remain  where  he  was 
at  three  thousand  dollars  a  year. 

''This,  naturally,  blocked  my  progress.  If  I  left,  it 
would  be  only  to  take  another  job  as  'assistant.' 
I  wanted  the  prestige  accruing  from  Packard's  posi- 
tion ;  then  I  myself  could  be  on  the  lookout  for  a  better 
opening. 

"After  studying  the  situation  from  all  angles,  I 
concluded  that  it  was  up  to  me  to  get  Packard  into 
a  bigger  job;   that  would  clear  the  track  for  me. 

"As  we  were  the  best  of  friends,  my  task  seemed  far 
from  impossible.  I  began  to  quietly  push  my  superior 
into  the  limelight.  Naturally  a  retiring  sort  of  fellow, 
I  saw  to  it  that  he  was  called  upon  for  speeches  at 
the  local  ad.  club's  meetings. 

"Then  I  began  to  clip  his  ads.  and  send  them  in  to 
the  trade  papers  for  reproduction  and  comment.  They 
created  a  most  favorable  impression,  and  finally  I  got 
him  to  write  some  articles  for  the  big  advertising  organs. 

"Some  months  after  I  had  begun  my  efforts  in 
Packard's  behalf  I  got  wind  of  an  opening  in  a  neigh- 
boring city.  It  was  a  big  job,  one  which  would  pay 
twice  or  three  times  the  salary  my  superior  was  re- 
ceiving. I  knew  that  I  could  not  secure  it  for  myself, 
but  I  felt  that  Packard  stood  a  mighty  good  show  to 
land  it. 

"I  began  pulling  wires.    Among  other  measures,  I 

induced  a  friend  of  mine,  who  w^as  acquainted  with  the 

management,  to  write  a  letter  suggesting  my  superior 

as  the  logical  man  for  the  job. 

174 


e> 


TOWARD    EFFICIENCY 

"A  few  days  later  Packard  was  amazed  to  receive 
an  offer  at  a  big  advance  over  the  salary  he  was  then 
getting.  He  accepted  it  and  I,  in  turn,  found  myself 
holding  down  his  desk.  Packard  has  never  learned 
that  I  was  responsible  for  his  advancement.  Since 
then  I  have  pursued  similar  tactics  once  or  twice  with 
equally  successful  results." 

$150,000  for  Information 

"Inertia  and  conceit,  those  are  the  two  quahties 
which  limit  the  progress  of  most  business  men,"  said 
an  efficiency  expert.  ''The  first  is  closely  allied  to  sheer 
mental  laziness;  the  second  arises  from  contrasting 
their  present  condition  with  that  of  some  former  period. 

"There  are  a  lot  of  bush-leaguers  in  the  world  of 
business  who  are  all  swelled  up  over  small  successes. 
If  they'd  compare  their  performance  with  the  major- 
league  players,  they'd  take  a  tumble  and,  perhaps, 
be  able  eventually  to  qualify  for  the  big  league. 

"'What  can  any  outsider  tell  me  about  running  my 
business?'  is  their  indignant  reply  to  the  suggestion 
that  they  permit  an  expert  to  overhaul  their  methods. 

"When  you  tell  this  iy^Q  of  egoist  that  Harrington 
Emerson  received  one  hundred  and  fifty  thousand 
dollars  yearly  merely  for  overhauling  and  applying 
his  principles  to  one  plant,  with  the  result  that  pro- 
duction costs  were  reduced  twenty-five  per  cent,  and 
the  men's  earnings  increased  ten  per  cent.,  he  opens 
his  eyes. 

"Now  in  this  case  Emerson  was  an  'outsider.'     He 

175 


MODERN    METHODS    IN    THE    OFFICE 

sold  and  delivered  nothing  but  brains.  And  the  pur- 
chaser made  a  very  profitable  investment.  He  did 
not  permit  conceit  to  stand  in  his  way.  The  conceited 
man  would  laugh  at  the  idea  of  paying  any  one  one 
hundred  and  fifty  thousand  dollars  for  telling  him  how 
to  run  his  business,  and,  in  the  mean  time,  his  com- 
petitor may  avail  himself  of  expert  service,  cut  his 
costs,  and  undersell  him.    No  one  knows  it  all. 

"It's  the  man  who  avails  himself  of  the  community's 
composite  brain — in  other  words,  who  secures  experts 
to  stimulate  various  departments  of  his  business — who 
will  increase  his  production  and  lower  his  costs." 

What  Analysis  Has  Done  for  Modem  Business 

''Every  man  makes  mistakes,"  said  a  successful 
executive,  the  other  day,  ''but  it's  the  man  who 
doesn't  make  the  same  mistake  twice  who  wins.  Most 
men  keep  on  making  the  same  mistake  all  their  lives. 

"It  seems  to  me  that,  of  all  departments  of  com- 
mercial progress,  greater  strides  have  been  made  in 
this  direction,  the  elimination  of  mistake  repetition, 
in  the  past  ten  or  fifteen  years,  than  in  any  other. 
Searching  analysis  applied  to  all  branches  of  business 
is  rapidly  elevating  commerce  to  the  plane  of  an  exact 
science. 

"Talk  to  an  eflficiency  expert,  for  example.  He'll 
tell  you  of  thousands  of  mistakes,  negative  mistakes, 
which  have  been  made  daily  for  a  generation  or  more 
in  great  manufacturing  plants.  Analysis  has  disclosed 
these  mistakes,  with  the  result  that  in  many  cases 

176 


TOWARD    EFFICIENCY 

output  has  increased  one  hundred  per  cent,  with  a 
fifty  per  cent,  reduction  of  the  pay-roll. 

"For  a  century  mistakes  have  been  made  in  the 
conversion  of  fuel  into  steam.  Tests  covering  scores 
of  plants  have  demonstrated  that,  out  of  every  three 
tons  of  coal  burned  under  the  boilers  of  this  country's 
manufacturing  plants,  one  was  wasted. 

''Many  factors  contributed  to  this  result.  Incom- 
plete combustion,  too  much  air,  too  thick  or  too  thin 
a  fuel  bed,  the  wrong  kind  of  coal — all  these  faults 
existed  and  no  one  thought  of  remedying  them.  To- 
day a  steam  engineer  can  step  into  your  plant  and  by 
a  thorough  analysis,  combined  with  exhaustive  tests, 
cut  your  fuel  bill,  perhaps,  twenty  or  thhty  per  cent., 
with  no  reduction  of  steam  production.  Another  case 
of  a  mistake  which  should  not  be  repeated: 

''Suppose  you  have  a  new  food  product  which  you 
wish  to  introduce  by  a  sampling  campaign.  Which 
is  the  best  method,  to  merely  distribute  your  samples 
from  door  to  door;  to  follow  this  plan,  but  to  combine 
it  with  a  sales  talk  to  the  housewife;  or  to  distribute 
your  samples  through  the  grocers?  Analysis  has 
proved  that  where  the  first  method  will  result  in  the 
sale  of  one  package  of  your  product,  the  second  will 
sell  three  and  the  third  will  sell  ten  packages.  So 
there's  a  mistake  which  it  is  no  longer  necessary  to 
make. 

"For  years  plants  operated  without  cost  systems. 
Consequently,  in  submitting  bids  for  contracts  the 
same  mistakes  were  made  year  after  year.  An  effi- 
cient cost  system,  which  is  merely  an  analysis  of  your 

177 


MODERN    METHODS    IN    THE    OFFICE 

expenses  enabling  you  to  apportion  them  correctly, 
eliminates  the  danger  of  bidding  too  high  or  too  low. 

''Advertising,  a  field  in  which  nearly  a  billion  dol- 
lars is  spent  annually  in  this  country,  offers  another 
example  of  the  value  of  analysis.  Formerly  'ads.,' 
booklets,  sales  letters,  and  other  advertising  literature 
were  prepared  and  published  with  the  hope  that  the 
plan  and  copy  were  the  best  for  the  purpose.  Now  in 
campaigns  of  any  magnitude  perhaps  a  dozen  *ads.'  or 
letters,  as  the  case  may  be,  are  prepared,  tested  on 
small  units,  and  the  results  carefully  tabulated  and 
analyzed.  Then  the  one  best  'ad.'  or  letter  is  applied 
on  a  national  scale.    Another  case  of  avoiding  mistakes. 

"Fifty  years  ago  business  men  guessed;  we  know. 
They  succeeded  in  spite  of  constant  repetition  of  the 
same  mistake.  We  don't  make  the  same  mistake  more 
than  once.  And  if  we're  willing  to  learn  by  the  other 
man's  experience,  we  don't  make  it  once." 

Getting  the  Right  Attitude 

"My  experience  has  convinced  me  that  there  is  not 
so  much  difference  between  people's  brains  as  the 
difference  in  salaries  would  indicate,"  said  a  business 
man.  "But  there  is  a  tremendous  difference  in  people's 
attitudes  toward  their  work. 

"As  a  rule,  those  who  develop  a  genuine  interest  in 
their  jobs  make  good;  those  who  don't,  fail — that's 
my  conclusion. 

"Thousands  of  men  are  genuinely  interested  in  base- 
ball,  prize-fights,   politics,   lodge   activities,   and   the 

178 


TOWARD    EFFICIENCY 

movies.  But  when  it  comes  to  getting  right  down 
to  their  jobs  and  seeking  to  evolve  better  and  more 
efficient  methods  of  handling  them,  they're  not  there. 
They  walk  through  the  day's  work  in  an  automatic 
fashion,  as  though  hjq^notized. 

'^4.s  a  matter  of  fact,  a  real  interest  in  almost  any 
kind  of  work  can  be  developed.  But  a  certain  amount 
of  will  power  and  application  is  required  before  one 
drills  deeply  enough  into  the  subject  to  tap  the  reser- 
voir of  unforced  and  spontaneous  interest. 

"Here  is  an  actual  instance  to  show  just  what  I 
mean.  At  one  time  I  was  appointed  advertising  man- 
ager for  a  correspondence  school  which  taught  illus- 
trating and  cartooning.  The  course  consisted  of  twenty 
lessons. 

''After  sizing  up  the  situation,  I  concluded  that  sales 
would  be  greatly  stimulated  if  we  would  include  a 
money-back  guarantee: 

Your  Money  Back  Without  Question, 
If,  After  Completing  10  Lessons, 
You  Feel  Dissatisfied. 

"That  was  the  offer  I  advocated.  'But  we'll  be 
swamped  with  demands,'  protested  the  president.  'We 
can't  afford  to  make  such  an  offer.' 

"'Note  that  I  insist  upon  their  completing  ten  les- 
sons,' I  replied.  'By  that  time  the  pupils  will  feel  so 
pleased  with  their  progress  that  they'll  be  glad  to 
finish  the  course.  After  the  eighth  or  ninth  lesson  the 
danger-point  will  have  been  passed.  It's  in  the  early 
stages  that  they  feel  discouraged.' 

"My  idea  was  adopted  and  proved  to  be  a  complete 

13  170 


MODERN    METHODS    IN    THE    OFFICE 

success.  Only  two  requests  for  a  return  of  the  tuition 
fee  were  ever  received.  By  the  tenth  lesson,  just  as 
I  anticipated,  a  genuine  interest  was  awakened. 

''Of  course,  illustrating  is  inherently  a  more  in- 
teresting subject  than  many  kinds  of  work,  hence  I 
am  not  justified  in  claiming  that  this  instance  applies 
to  all  cases.  But  you  see  the  principle  I'm  seeking  to 
emphasize. 

'Too  many  men  are  time-servers  and  clock-watch- 
ers. They  look  upon  the  day's  work  as  a  boy  looks 
upon  school — an  involuntary  imprisonment.  You  can't 
blame  the  boy,  but  the  man  should  have  a  different 
attitude.    And  he  can  attain  one. 

''I  have  seen  the  addition  of  one  new  member  to  a 
big  office  force  completely  change  the  atmosphere  of 
the  entire  establishment.  In  this  case,  a  young  fellow 
who  did  considerable  reading  along  lines  of  business 
joined  the  organization.  He  began  to  install  some  re- 
forms, suggested  the  payment  of  the  typists  on  a 
piece-work  basis,  etc.  Soon  others  began  to  emulate 
him,  and  within  a  few  months  a  listless  group  of  time- 
servers  was  converted  into  an  enthusiastic  force  of 
workers,  constantly  on  the  watch  for  new  and  improved 
methods.  Even  the  office-boy,  who  had  previously 
consumed  about  half  an  hour  morning  and  night 
carrying  heavj^  ledgers  and  files  into  and  out  of  the 
big  vault,  awakened  to  the  inefficiency  of  that  method 
and  demanded  the  installation  of  a  little  cart  to  lighten 
his  labors  and  speed  up  his  work.  This  little  device 
cut  down  the  time  required  for  that  particular  task 

seventy-five  per  cent. 

180 


TOWARD    EFFICIENCY 

''An  able  manager  should,  like  a  good  teacher,  in- 
spire his  subordinates  with  a  real  interest  in  their 
work.  But  competent  executives  are  scarce'.  It  is 
up  to  each  man  to  develop  his  own  capacities.  If  he 
can  but  once  grasp  the  right  attitude,  what  was  previ- 
ously drudgery  becomes  transformed  into  pleasure. 
His  days  seem  too  short  to  accomplish  all  that  he 
wishes.  He  grows  and  expands.  And  eventually  the 
difference  becomes  apparent  in  his  pay-envelope." 

Heat,  Ventilation,  and  Efficiency 

''In  winter,"  said  the  superintendent  of  a  manu- 
facturing plant,  "the  heating  and  ventilation  problem 
looms  large.  It  is  only  of  late  years  that  efficiency 
experts  have  realized  the  close  connection  between 
these  factors  and  volume  of  production. 

"Just  as  a  reduction  in  working-hours  has,  to  the 
management's  surprise,  often  resulted  in  a  greater 
output,  so  the  installation  of  an  expensive  heating  and 
ventilating  equipment,  for  purely  humanitarian  mo- 
tives, almost  always  proved  to  be  a  splendid  invest- 
ment. 

"Man's  efficiency  is  just  as  dependent  upon  a  copious 
supply  of  pure  air  of  the  right  temperature  as  it  is 
upon  his  having  a  sufficient  amount  of  nourishing  food. 

"An  overheated  shop  means  enervation  and  list- 
lessness;  an  underheated  one  means  restricted  output 
because  of  the  stiffening,  paralyzing  effect  of  cold. 

"And  equally  important  as  the  temperatm-e  item 
is  that  of  the  percentage  of  humidity.     Too  much 

181 


MODERN    METHODS    IN    THE    OFFICE 

humidity  is  one  of  the  most  binding  brakes  upon  a 
satisfactory'  volume  of  output. 

''Each  building  presents  an  individual  problem  to 
be  solved  only  by  a  competent  specialist.  But,  in 
general,  it  has  been  found  desirable  to  have  the  warmed 
incoming  air  discharge  at  a  considerable  height  from 
the  floor  and  distance  from  the  walls.  The  stream  is 
then  directed  toward  the  walls;  as  it  cools  it  descends 
and  finds  an  exit  in  vents  located  in  the  walls  near  the 
floor.  I  am  referring  now  to  a  combined  heating  and 
ventilating  system  in  which  blowers  are  used  to  dis- 
tribute air  from  outside. 

^'Then  there  are,  of  course,  blower  systems  which 
merely  rehandle  and  reheat  the  inside  air,  and,  finally, 
the  simple  direct  radiation  from  steam-coils  plan. 
Tests  have  indicated  that,  from  the  viewpoint  of  coal 
consumption,  the  latter  is  the  most  expensive. 

''Steam-heating  by  means  of  exhaust  steam  is  ex- 
tremely economical.  There  is  practically  no  difference 
between  the  heating  value  of  live  and  exhaust  steam. 
The  engine's  efficiency  is  slightly  reduced,  to  be  sure, 
because  of  a  hardly  perceptible  back  pressure.  But  the 
saving  in  fuel  far  counterbalances  this  drawback. 

''The  main  point  is  to  have  the  one  best  system, 
no  matter  what  the  cost.  For  the  proper  conditions 
react  promptly  upon  the  operatives'  efficiency.  I 
know  of  one  case  where  the  volume  was  increased 
thirty  per  cent,  as  a  direct  result  of  substituting  a 
good  system  for  one  which  was  totally  inadequate. 
Against  this  gain  the  cost  of  the  system  and  its  upkeep 
was  negligible.    In  the  final  analysis,  it's  yoiu"  men  who 

182 


TOWARD    EFFICIENCY 

make  your  money.  Give  them  satisfactory  working 
conditions,  and  you  will  reap  a  rich  reward  in  actual 
dollars  and  cents." 


Are  You  Availing  Yourself  of  this  Institution's 
Facilities? 

*'Two  lines  of  educational  work  have  been  inaugu- 
rated and  strenuously  carried  out  by  the  Commercial 
Museum  of  Philadelphia,"  said  Mr.  W.  P.  Wilson  in  his 
recent  speech  at  Washington.  ''The  first,  a  foreign- 
trade  bureau,  has  arduously  labored  to  convince  the 
manufacturer  of  the  urgent  necessity  of  occupying  some 
of  the  foreign  fields  of  trade  before  they  were  possessed 
by  other  countries.  This  work  has  been  pushed  in  all 
parts  of  the  United  States  and  with  all  lines  of  manu- 
facturers whose  products  could  find  normal  sale  in 
any  locahty  abroad.  This  foreign-trade  bm-eau  fur- 
nishes the  manufacturer  with  all  necessary  data  on  the 
requirements  and  opportunities  of  foreign  markets  and 
on  tariffs  existing  in  different  ports  of  entry;  on  trade- 
marks and  patent  laws,  consular  relations,  shipping 
routes  and  rates,  and  similar  information  relating  to 
the  invoicing  and  transportation  of  goods  for  foreign 
countries;  methods  of  payment  and  granting  of  credits; 
competition  to  be  met  in  foreign  markets,  and  names 
of  reliable  business  houses  throughout  the  world.  The 
bureau  has  a  list  of  more  than  three  hundred  and 
seventy-five  thousand  foreign  firms,  with  information 
regarding  then-  lines  of  business  and  importance  in 

the  trade.    It  conducts  a  free  reference  library  of  com- 

183 


MODERN    METHODS    IN    THE    OFFICE 

merce  and  travel,  with  over  seventy-eight  thousand 
vokimes,  containing  over  four  hundred  foreign  and 
domestic  dii'ectories,  both  city  and  trade;  official  bul- 
letins of  every  countiy  publishing  them;  consular  re- 
ports from  all  countries  which  issue  them;  seven 
hundred  and  fifty  of  the  leading  magazines,  trade  jour- 
nals, and  dailies,  of  which  over  one-half  are  from  foreign 
countries.  This  library,  with  its  very  complete  fist 
of  foreign  documents,  is  used  by  a  large  corps  of  as- 
sistants for  the  direct  benefit  of  exporting  firms,  and 
to  give  them  the  needed  help  they  require.  This  work 
is  done  for  any  manufacturer  at  actual  cost  of  investi- 
gation and  compilation. 

''The  second  line  of  educational  work  done  by  the 
Commercial  Museum  is  for  the  schools  of  the  city  of 
Philadelphia  and  the  state  of  Pennsylvania." 

Commercial  Abbreviations  in  the  Export  Trade 

Now  that  many  American  business  men  whose  oper- 
ations have  been  confined  to  the  limits  of  our  own 
country  are  beginning  to  develop  markets  in  other 
countries  it  is  well  that  the  foreign  interpretation 
of  certain  commercial  abbre\'iations  be  well  under- 
stood. 

Many  misunderstandings  in  times  past  have  been 
due  to  the  fact  that  buyer  and  seller  have  interpreted 
f.o.b. — f.a.s. — f.o.r. — and  c.i.f. — differently.  In  more 
than  a  few  cases  bitter  disputes,  with  a  consequent 
loss  of  valuable  patronage,  have  ensued. 

Our  consul  at  Rome  submits  the  following  explana- 

184 


TOWARD    EFFICIENCY 

tions  of  commercial  abbreviations  as  universally  in- 
terpreted in  Italy.  As  a  matter  of  fact,  these  apply 
throughout  the  export  world. 

''F.o.b. — free  on  board — is  invariably  understood 
to  mean  free  on  board  ship  at  seaport.  In  Italy  it  is 
never  understood  to  mean  free  on  board  cars.  For 
instance,  f.o.b.  New  York  means  that  freight  from  the 
inland  place  of  manufacture  or  shipment,  insurance 
(if  any)  during  the  railroad  transit  in  the  United 
States,  cartage  from  depot  to  dock,  and  loading  charges 
at  dock  are  all  paid  by  the  exporter. 

''F.a.s. — free  alongside  (ship) — means  that  railroad 
freight  and  insurance  in  the  United  States  and  all  cart- 
age charges  to  the  dock  are  paid  by  exporter.  The 
loading  charges  from  dock  to  ship  in  this  case  are  paid 
by  the  purchaser. 

*'F.o.r. — free  on  rail — means  loaded  on  railroad  cars 
at  the  point  quoted;  e.  g.,  by  f.o.r.  Cincinnati,  or  f.o.r. 
New  York,  it  is  understood  that  the  purchaser  buys 
the  goods  on  the  railroad  cars  at  Cincinnati  or  New 
York  free  of  all  charges. 

"C.i.f. — cost  (of  goods),  insurance,  freight.  By  this 
term  it  is  understood  that  the  exporter  sells  the  goods 
with  all  charges  paid  to  the  point  quoted.  For  ex- 
ample, a  quotation  of  coal  at  S12.50  per  ton,  c.i.f. 
Naples,  would  mean  that  the  coal  is  sold  by  the  ex- 
porter at  that  price  on  shipboard  at  Naples,  the  ex- 
porter having  paid  all  charges,  including  ocean  freight 
and  insurance.  The  Italian  buyer  would  have  to  pay 
the  cost  of  unloading  from  ship,  customs  duties,  and 
handling  charges  in  Italy." 

185 


MODERN    METHODS    IN    THE    OFFICE 

The  Government's  Pamphlets  on  Business 

A  special  agent  of  the  Department  of  Commerce 
recently  deplored  the  fact  that  so  few  business  men 
availed  themselves  of  the  bureau's  services. 

It  is  true  that  many  fail  to  utilize  the  government's 
activities  in  their  behalf.  Aside  from  the  publication 
of  Commerce  Reports,  the  bureau's  daily  paper,  a 
collection  of  nearly  one  hundred  and  forty  special 
bulletins  have  been  prepared  and  can  be  obtained  for 
five  or  ten  cents  apiece  upon  application  to  the  Super- 
intendent of  Documents. 

These  bulletins  cover  a  vast  field,  applying  to  both 
domestic  and  foreign  business,  although  principally  to 
the  latter.  They  are  listed  in  a  catalogue  entitled, 
"List  of  Publications,"  issued  by  the  Bureau  of  Foreign 
and  Domestic  Commerce,  which  can  be  obtained  by 
application  to  the  Superintendent  of  Documents  at 
Washington  or  to  the  local  office  of  the  bureau. 

Methods,  Not  Money,  Win  Success 

''An  ounce  of  brains  is  worth  a  pound  of  money  in 
achieving  success,"  remarked  a  banker  of  long  ex- 
perience. 

''When  a  man  applies  for  a  loan,  I'm  a  good  deal 
more  interested  in  learning  what's  in  his  skull  than 
what's  in  his  pocket-book. 

"Money  can  be  lost  with  startling  rapidity;  it's 
seldom  that  a  man  loses  his  intelligence. 

''Brain  power  evolves  proper  methods,  and  right 

186 


TOWARD    EFFICIENCY 

methods  make  money.  What  I  call  brains,  business 
brains,  are  exhibited  when  a  man  enters  a  highly 
competitive  line  and,  through  the  superiority  of  his 
methods,  wins  success. 

''Merely  that  a  man  has  made  a  few  millions  doesn't 
prove  the  possession  of  brains.  He  may  have  found  a 
gold-mine,  or  gambled  on  Wall  Street  successfully, 
or  bought  Ford  stock  in  the  early  days.  But  when  I 
see  a  man  open  a  little  retail  store,  for  instance,  and, 
a  little  later,  open  another,  then  gradually  add  to 
his  stores  until  he's  operating  a  successful  chain,  I 
know  that  man  has  business  brains.  He's  growing  rich 
in  a  field  where  thousands  are  losing  money;  luck 
cannot  enter  into  a  success  of  that  type. 

''The  man  simply  has  evolved  better  methods  than 
his  competitors'.  He  has  demonstrated  that  he  has 
brains.  That  type  of  man  can  borrow  more  here  on 
comparatively  small  assets  than  many  a  man  with 
three  times  his  money— that  is,  if  he  wants  the  money 
to  use  in  expanding  along  the  lines  in  which  he  has 
demonstrated  his  ability.  If  he  wants  to  embark  in 
another  field,  that  is  something  else  again. 

"No,  money  is  not  the  main  factor  in  success. 
Thousands  of  corporations  representing  sizable  aggre- 
gations of  capital  are  standing  just  about  even  from 
year  to  year.  And  I  have  seen  small  competitors 
overtake  them  and  leave  them  far  in  the  rear  merely 
because  of  superior  man  power.  Men  and  methods — 
there's  a  combination  which  has  money  backed  off 
the  boards.  Bulk  in  business  is  as  often  a  handicap 
as  an  asset.    Look  at  the  little  specialty  stores  which 

187 


MODERN    METHODS    IN    THE    OFFICE 

are  giving  the  department  stores  such  a  run  for  their 
money.  They  represent  a  comparatively  small  in- 
vestment, but  they're  flourishing  like  the  green  bay 
tree. 

''Lines  which  were  never  before  represented  by 
specialty  shops  are  beginning  to  appear.  New  York 
city  is  supporting  a  successful  chain  of  five  or  six 
hosiery  stores.  Wasn't  it  Fitzsimmons  who  once 
remarked,  'The  bigger  they  are,  the  harder  they 
fair? 

"In  a  small  store  the  sense  of  unity  of  interest  be- 
tween employer  and  employee  is  stronger  than  in  the 
great  department  store.  It  is  so  obvious  to  the  sales- 
people that  the  concern's  success  is  dependent  upon 
their  efforts  that  they  work  with  more  interest.  They 
feel  more  responsibility. 

"If  you,  for  instance,  were  one  of  ten  voters  instead 
of  one  of  fifteen  million,  wouldn't  you  make  up  your 
mind  regarding  the  merits  of  the  candidates  after  a 
careful  study  of  the  opposing  claims  rather  than  voting, 
as  do  most  of  our  fifteen  million,  as  a  result  of  the  im- 
pressions left  by  various  cartoons  they  may  have  noted? 
That's  one  reason  small  stores  can  successfully  com- 
pete with  large  ones. 

"Let  no  man  tell  me  that  lack  of  capital  is  holding 

him  down.    If  he  had  capital  he'd  probably  soon  lose 

it.    Exceptional  ability  in  business  life  will  generally 

win  its  way.     Which  is  a  quite  different  thing  from 

saying  that  exceptional  ability  is  necessarily  of  any 

particular  value  to  the  community.    In  fact,  the  reverse 

is  sometimes  the  case." 

188 


TOWARD    EFFICIENCY 

How  the  Bureau  of  Standards  Serves  the  Business  Man 

"That  business  is  one  thing  and  government  an- 
other is  a  view  still  held  by  many  people,"  remarked 
a  manufacturer.  ''But  daily  we  see  the  two  be- 
coming more  inextricably  combined.  The  reason  is 
clear. 

''By  assigning  certain  tasks  and  duties  to  the  govern- 
ment the  community  is  spared  the  economic  w'aste  in- 
volved in  maintaining  similar  facilities  in  hundreds  of 
private  manufacturing  plants. 

''A  conspicuous  example  of  this  is  the  Bureau  of 
Standards  at  Washington.  This  department,  manned 
by  scientific  and  technical  experts,  is  equipped  with 
complex  and  expensive  testing  machinery  which  w^ould 
be  used  perhaps  only  once  or  twdce  a  year  by  the  aver- 
age manufacturer.  But,  as  it  is  accessible  to  every 
concern  in  the  country,  it  is  in  constant  use.  Here  are 
a  few  of  the  department's  activities  during  the  month 
of  June: 

"  A  six-cylinder  automobile  engine  has  been  installed 
in  the  gas-engine-testing  laboratory  at  the  bureau,  to 
investigate  the  merits  of  materials  that  are  being  mar- 
keted with  the  claim  that  when  added  in  small  quanti- 
ties to  gasolene  they  produce  increased  efficiency,  to- 
gether with  freedom  from  carbonization. 

'*  Railroad-track  scale  tests  have  been  conducted 
in  Minnesota  by  Test  Car  No.  1,  co-operating  with 
the  railroad  and  warehouse  commission  of  that 
state.     During  June  twenty-nine  raih-oad-track  scales 

189 


MODERN    METHODS    IN   THE    OFFICE 

were  tested.  Test  Car  No.  2  has  been  operating 
in  the  states  of  Maryland,  West  Virginia,  and  Ken- 
tucky and  tested  thirty -eight  railroad -track  scales 
during  June. 

''A  manila  rope  nine  inches  in  circumference  was 
submitted  by  the  Panama  Canal.  It  was  tested  in  the 
large  Emery  machine  and  failed  at  a  load  of  57,800 
pounds. 

"  Miscellaneous  testing  included  rubber  and  leather 
goods  for  the  Panama  Canal  and  samples  of  miscel- 
laneous materials  submitted  by  manufacturers  to  the 
general  supply  committee  in  competition  for  govern- 
ment contracts.  During  June  73  samples  were  tested. 
In  addition  to  these,  292  samples  of  paper  were  tested, 
170  of  which  were  for  the  Public  Printer  and  118  for 
other  executive  departments. 

"  A  women's  novelty  store  in  Washington  was  given 
assistance  in  determining  the  fiber  content  of  a  ship- 
ment of  women's  nets.  A  New  York  dealer  in  spool 
thread  submitted  two  spools  of  different  makes  which 
were  marked  1,200  yards  to  the  spool.  Examina- 
tion showed  that  one  was  20  yards  short  and  the 
other  72  yards  short.  This  kind  of  thread  is  employed 
in  garment-making  and  in  sewing  on  buttons.  If  3 
inches  of  thread  arc  allowed  to  each  button,  72  yards 
would  sew  on  8G4  buttons. 

"  Special  assistance  was  given  to  the  Office  of  Indian 
Affairs  in  making  awards  on  large  quantities  of  uniform 
and  other  cloths.  Specifications  were  prepared  for 
prison  clothes  for  the  District  Commissioners.  Tests 
were  made  upon  441  samples  of  textiles." 

190 


TOWARD    EFFICIENCY 

Why  the  Business  Man  Should  Understand  Economics 

''Too  many  business  men  are  mere  opportunists," 
said  a  manufacturer,  recently.  ''They  are  thoroughly 
posted  on  the  affairs  with  which  they  deal  daily,  the 
latest  production,  accounting,  and  sales  methods,  for 
example;  but  when  it  comes  to  planning  for  the  future 
they're  all  at  sea  because  they  know  little  or  nothing 
of  practical  economics. 

"Some  months  ago  I  was  reading  an  interesting  book 
entitled,  Gold  Supply  and  Prosperity,  edited  by  Byron 
W.  Holt. 

"Mr.  Holt  assumes  that  the  production  of  gold  will 
increase  at  an  average  rate  of  at  least  five  per  cent, 
for  the  next  ten  years,  and  from  this  premise  formu- 
lates the  following  conclusions.  Conclusion  number 
six  has  greatly  influenced  my  policy  in  shaping  the 
future  course  of  this  concern. 

(1)  That  the  value  of  gold  will  depreciate  as  the  quantity  in- 
creases, though  not,  perhaps,  at  the  same  ratio. 

(2)  That  this  depreciation  will  be  measured  by  the  rise  in  the 
average  price  level. 

(3)  That  rising  prices  will  soon  lead  again  to  rising  and  higher 
interest  rates. 

(4)  That,  because  of  high  interest  rates,  the  prices  of  bonds 
and  most  other  long-time  obhgations  dra'sving  fixed  rates  of  in- 
terest, dividends,  or  income  will  again  decline  to  low  levels. 

(5)  That,  because  of  rising  prices  and  high  interest  rates,  the 
cost  of  materials  and  supplies  will  tend  to  decrease  the  net  profits 
of  all  concerns  the  prices  of  whose  products  or  services  either  can- 
not be  advanced  at  all  or  are  not  free  to  advance  rapidly. 

(6)  That,  because  of  rising  prices,  the  net  profits  of  all  concerns 

191 


MODERN    METHODS    IN    THE    OFFICE 

that  own  their  owti  sources  of  materials  and  supplies  will  tend  to 
increase. 

(7)  That,  because  of  rising  prices  of  commodities,  the  market 
prices  of  all  tangible  property''  \\'ill  tend  to  rise.  This  includes 
lands,  mines,  forests,  buildings,  and  improvements. 

(8)  That,  because  of  rising  prices  of  commodities  and  property, 
the  prices  of  the  stocks  of  corporations  holding  commodities  or 
property  \nll  tend  to  advance. 

(9)  That,  because  of  rising  prices,  and  therefore  of  cost  of  liv- 
ing, wages  must  and  will  tend  to  advance. 

(10)  That,  because  wages  and  salaries  will  not  rise  as  much  or 
as  fast  as  will  prices  and  the  cost  of  hving,  there  will  be  dissatis- 
faction and  unrest  among  wage  and  salary  earners. 

(11)  That,  because  of  rising  prices  and  property,  there  will  be 
much  speculation  in  commodities,  stocks,  and  real  estate. 

(12)  That,  because  of  the  great  profits  that  will  result  from 
speculation,  honest  industry  will  be  discouraged  and  recklessness 
and  extravagance  will  be  encouraged. 

(13)  That,  because  rising  prices  will  decrease  the  purchasing 
power  of  debts,  and  thus  aid  debtors  at  the  expense  of  creditors, 
they  will  discourage  saving  and  thrift. 

(14)  That,  then,  an  increasing  output  of  gold  means  rising  prices, 
rising  wages,  high  interest  rates,  the  scaling  of  debts,  speculation, 
unjust  distribution  of  earnings  and  wealth,  and  general  dissatis- 
faction and  discontent." 


Overstocking  +  Poor  Accounting  4-  Quality  Stock 
=   Failure 

''Did  you  ever  stop  to  think  of  the  economic  loss 
to  the  community  involved  in  commercial  failures?" 
said  a  business  man.  "For  the  cost  ultimately  falls 
upon  each  one  of  us  just  as  does  the  cost  of  fires.  Fires 
mean  higher  insurance  rates  as  well  as  higher  prices 
for  building  materials. 

192 


TOWARD    EFFICIENCY 

*' Failures  must  be  discounted  in  the  price  set  for 
the  sale  of  commodities,  consequently  we  all  pay  more 
for  goods  than  we  would  if  no  one  ever  failed. 

"Furthermore,  a  failm'e  means  that  an  organiza- 
tion which  cost  money  to  create,  and  which  supposedl}' 
served  a  useful  economic  purpose,  is  dissolved.  The 
units  comprising  the  organization  often  are  out  of 
work  for  some  time,  hence  do  not  function  to  their 
fullest  extent  of  usefulness  for  a  considerable  period. 
Also  the  concern's  good-will  is  irretrievably  lost,  and 
here  again  the  community  pays  a  portion  of  the  price. 
Good-will  costs  money.  Its  possession  means  that 
business  can  be  transacted  more  cheaply  than  other- 
wise. Dissolve  it  into  thin  air,  as  a  failure  does,  and 
an  actual,  though  intangible,  asset  is  lost  to  the  com- 
munity. 

"Many  failures  are  unnecessary.  Often  a  man 
threatened  with  bankruptcy  could  weather  his  diffi- 
culties if  he  knew  just  what  was  wrong  with  his  busi- 
ness. It  was  a  realization  of  this  fact  that  actuated 
the  Wholesale  Men's  Furnishings  Association  of  New 
York  to  appoint  an  advisory  committee  for  the  pur- 
pose of  coaching  dealers  who  are  in  a  precarious  con- 
dition. 

"As  soon  as  a  retailer  begins  to  show  signs  of  falling 
into  the  slow-pay  division,  a  letter  is  written  him  sug- 
gesting that  he  talk  over  his  troubles  with  the  com- 
mittee. With  his  consent,  they  then  study  his  books, 
analyze  his  problems,  and  proffer  advice.  During  the 
first  six  months  of  this  year  thirty-six  dealers  were 
investigated,  and  of  that  number  twenty-eight  were 

193 


MODERN    METHODS    IN    THE    OFFICE 

re-established  upon  a  sound  basis.  In  the  balance  of 
eight  cases  the  business  was  wound  up.  But  the  sig- 
nificant feature  of  this  record  is  that  the  need  in  the 
majority  of  cases  was  for  expert  advice. 

"An  analysis  of  the  various  cases  demonstrated  that 
the  weak  spots  consisted  of: 

1.  Overstocking. 

2.  Carrying  goods  of  too  high  quality. 

3.  Lack  of  proper  accounting  methods. 

'^Expert  advice  quickly  remedied  these  three  diffi- 
culties. This  merely  supports  the  conclusions  of  the 
commercial  agencies  that  thirty  per  cent,  of  all  failures 
are  due  to  incompetency,  and  twenty-nine  per  cent, 
to  the  same  cause  disguised  under  the  phrase,  'lack  of 
capital.' 

''In  my  opinion,  this  plan  of  the  Wholesalers'  Asso- 
ciation will  soon  be  widely  adopted.  It  is  in  line  with 
modem  ideas;  it  means  elimination  of  waste  and  lost 
motion;   in  a  word — efficiency." 

Is  Your  Business  Suffering  from  Arteriosclerosis? 

"In  a  speech  delivered  before  the  Press  Club  in 
Washington,"  remarked  a  business  man,  "President 
Wilson  said: 

"  'There  is  a  simile  that  was  used  by  a  very  interest- 
ing English  writer  that  has  been  much  in  my  mind. 
Like  myself,  he  had  often  been  m'ged  not  to  try  to 
change  so  many  things. 

"'I  remember,  when  I  was  president  of  a  university, 
a  man  said  to  me,  "Good  Heavens,  man!   Why  don't 

194 


TOWARD    EFFICIENCY 

you  leave  something  alone  and  let  it  stay  the  Way  it 
is?"  And  I  said:  "If  you  will  guarantee  to  me  that  it 
will  stay  the  way  it  is,  I  will  let  it  alone;  but  if  you 
knew  anything  you  would  know  that  if  you  leave  a 
thing  alone  it  will  not  stay  where  it  is.  It  will  develop, 
and  will  either  go  in  the  wrong  direction  or  decay." 

'''I  reminded  him  of  this  thing  that  the  EngHsh 
writer  said,  that  if  you  want  to  keep  a  white  post 
white  you  cannot  let  it  alone.  It  will  get  black.  You 
have  to  keep  doing  something  to  it.  In  that  instance 
you  have  got  to  paint  it  white  frequently  in  order  to 
keep  it  white,  because  there  are  forces  at  work  that 
will  get  the  better  of  you.  Not  only  will  it  turn  black, 
but  the  forces  of  moisture  and  the  other  forces  of 
nature  will  penetrate  the  white  paint  and  get  at  the 
fiber  of  the  wood,  and  decay  will  set  in,  and  the  next 
time  you  try  to  paint  it  you  will  find  that  there  is 
nothing  but  punk  to  paint.* 

''This  applies  just  as  strongly  to  the  administration 
of  a  business  as  it  does  to  that  of  a  nation. 

''Every  salesman  knows  that,  as  a  rule,  the  most 
difficult  concern  to  which  to  sell  any  time-  or  labor- 
saving  device  or  any  constructive  business  service  is 
the  conservative  old  firm  which  feels  securely  intrenched 
behind  its  record  of  a  generation's  success.  And  these 
are  the  concerns  which  are  in  greatest  danger  of  dis- 
aster. 

"This  attitude  is  a  symptom  of  incipient  arterio- 
sclerosis, or  hardening  of  the  arteries.  The  mental 
arteries  of  such  an  organization  become  so  incrusted 
with  a  lime-like  deposit  composed  of  equal  parts  of 

14  195 


MODERN    METHODS    IN    THE    OFFICE 

inertia,  complacency,  and  prejudice  that  eventually  they 
become  utterly  impervious  to  the  influx  of  life-giving, 
regenerating  ideas;  vigorous  young  competitors  secure 
all  the  new  business  which  develops  and  gradually 
annex  a  good  many  of  their  old  customers,  and  finally 
comes  failure,  or,  at  best,  liquidation. 

''Many  a  man  has  been  prosperous  at  fifty  and 
bankrupt  at  sixty-five.  He  always  has  some  good  reason 
to  advance.  Shifting  trade  currents  have  left  him 
stranded,  or  the  demand  for  his  product  ceased  before 
the  substitution  of  cheaper  materials.  But  the  real 
explanation  was  mental  arteriosclerosis. 

''Only  the  other  day  I  was  talking  to  an  old-timer 
who  has  desk  room  in  a  down-town  office-building, 
and  occasionally  sells  a  little  belting. 

"'A  few  years  ago  I  was  doing  a  big  business,'  he 
related.  'But  now  there's  no  business  to  be  done.  The 
advent  of  motor-driven  machinery  has  destroyed  the 
business.  Some  of  the  manufacturers  are  getting  des- 
perate,' he  continued.  'They've  started  advertising!' 
He  picked  up  a  copy  of  a  technical  magazine  and 
pointed  to  a  belting  ad.  'Look  at  that!'  he  exclaimed. 
'Isn't  that  a  joke?  This  man  advertises  that  the 
leather  he  uses  is  carefully  selected  and  that  he  buj'^s 
only  that  from  the  side  of  the  animal  opposite  to  that 
upon  which  it  habitually  lies.  He  claims  that  they 
lie  on  one  side  only.  I  happen  to  know  who  is  respon- 
sible for  that  wasted  money.  It's  a  young  college  fellow 
who  inherited  his  father's  business.  The  old  gentleman 
would  turn  in  his  grave  if  he  knew  how  the  son  was 
making  ducks  and  drakes  of  his  money.      Advertising 

196 


TOWARD    EFFICIENCY 

may  pay  in  some  lines  of  business.  It's  a  sheer  waste 
of  money  to  spend  it  on  pushing  belting.' 

'"A  typical  case  of  arteriosclerosis/  I  reflected. 
'He  thinks  that  the  loss  of  his  business  is  due  entirely 
to  a  change  in  power  transmission  methods  and  he's 
convinced  advertising  represents  money  thrown  away. 
I'm  just  interested  enough  to  see  what  the  figures 
prove  regarding  the  belting  business.' 

''Reference  to  government  reports  demonstrated  that 
in  1904,  at  the  time  the  old  man  was  doing  a  big 
business,  the  value  of  the  belting  butts  tanned  in  the 
United  States  totaled  $10,647,078. 

"In  1914  the  amount  came  to  $12,876,554,  or  over 
twenty  per  cent,  more  than  ten  years  previous." 

Job  Analysis  in  Modern  Industrial  Plants 

"Before  I  assumed  charge  of  this  department,"  said 
the  employment  manager  of  a  large  corporation,  in 
the  course  of  an  interview  with  the  writer,  "I  made  a 
careful  study  and  analysis  of  every  job  in  the  plant. 
This  was  to  enable  me  to  describe  to  applicants  the 
nature  of  the  work  in  which  they  would  be  engaged, 
and  also  to  equip  me  with  knowledge  which  would  en- 
able me  to  make  transfers  intelligently  in  case  employees 
turned  out  to  be  unfitted  for  the  particular  jobs  to 
which  they  were  assigned.  But  these  are  but  two  of 
many  instances  of  the  value  of  job  analysis.  As  Doctor 
Metcalf  says  in  his  report  on  Vocational  Guidance: 

Thorough  job  analysis  includes  a  careful  study  of  every  kind  of 
occupation,  both  within  the  industry  itself  and  in  relation  to  the 

197 


MODERN    METHODS    IN    THE    OFFICE 

life  of  the  employee  outside  of  his  occupation.  In  tliis  way  the 
total  result  of  work  analysis  gives  a  complete  view  of  the  whole 
man.  The  significance  antl  service  of  job  analysis  are  being  rapidly 
appreciated.  Job  analysis  is  carried  on  for  varying  reasons  in 
different  firms.  In  some  places  it  is  carried  on  in  order  to  arrive 
at  satisfactory  wage  schedules,  initial  and  progressive.  In  several 
companies  many  work  positions  have  been  carefully  analyzed 
and  classified.  The  job  duties  have  been  briefly  but  fully  defined, 
and  a  range  of  wage  or  salary  prescribed  with  reference  to  definite 
periods  of  time.  In  the  case  of  the  more  important  positions, 
only  minimimi  and  maximum  rates  are  prescribed.  From  time  to 
time  those  schedules  are  revised  to  meet  changing  conditions  of 
the  work  and  of  the  labor-market.  Such  procedure  aids  in  measur- 
ing productivity  and  gives  a  basis  for  rewarding  workers.  Outside 
experts  are  often  employed  to  help  in  this  work  of  job  analysis. 

Job  analysis  is  also  of  great  service  in  the  problem  of  original 
selection.  When  the  employment  bureau,  which  is  responsible 
for  selection,  has  complete  data  regarding  requirements  for  the 
different  jobs,  these  facts  naturally  direct  those  of  the  employment 
bureau  responsible  for  selection  to  look  for  the  required  qualifi- 
cations in  the  applicants.  Job  analysis  is  made  under  the  direc- 
tion of  the  employment  department,  to  enable  the  employment 
manager  and  educational  directors  to  select  employees  more  cer- 
tainly, and  to  develop  and  protect  them  when  placed. 

In  one  firm,  where  it  took  a  workman  from  one  to  three  years 
to  become  proficient  in  a  certain  job,  it  was  found,  as  a  result  of 
job  analysis,  just  why  it  took  so  long.  It  was  pointed  out  by  an 
educational  expert  how  the  period  of  preparation  could  be  so 
guided  that  the  operator  could  become  proficient  in  a  much  shorter 
time  than  was  then  being  required  at  the  job.  The  job  was  one  in 
which  mechanical  skill  constituted  about  tlu-ee-fourths  and  non- 
technical skill  about  one-fourth.  Such  analyses  are  of  very  great 
value.  They  point  out  to  the  employer  just  what  preliminary 
training  is  necessary  for  different  kinds  of  work,  and  he  is  then 
in  a  position  to  co-operate  with  educational  agencies  to  have  the 
operator  trained  in  the  shortest  time  possible. 

Job  analysis  helps  to  discover  and  determine  lines  of  promotion. 

198 


TOWARD    EFFICIENCY 

It  enables  a  concern  to  know  the  possibilities  of  work  alternation 
or  transfer,  and  thus  prepare  the  way  for  utihzing  in  one  depart- 
ment laborers  who  may  not  fit  well  in  another  department.  It  is 
also  of  the  greatest  service  in  getting  data  and  outlines  for  training 
courses — that  is,  it  is  of  first  importance  in  educational  work. 

In  one  large  manufacturing  establishment,  where  they  had 
begun  job  analysis  in  the  different  departments,  the  following 
data  were  taken  from  the  cards  covering  the  analysis  of  the  power- 
house work,  so  as  to  reveal  the  logical  sequence  of  promotion 
therein : 

a.   Coal-handler. 

h.    Aslmaan. 

c.  Stoker.  ' 

d.  Boiler-cleaner. 

e.  Water-tender. 
/.    Wiper. 

g.   Oiler. 

h.   Water-operator. 

i.    Steam  and  air  operator. 

j.    Switchboard-operator. 

k.   Second  engineer. 

I.    First  engineer. 

The  helpful,  constructive  results  gained  from  job  analysis  may 
be  summarized  as  follows: 

a.  It  is  a  great  help  in  initially  selecting  employees. 

6.  It  gives  necessary  data  for  outlining  to  the  beginners  the 
possibiUties  of  advancement  and  indicates  when  wage  increases 
may  be  expected,  and  what  the  anticipated  maximum  salary  may 
become. 

c.  It  is  of  great  assistance  in  transferring  those  not  adapted  to 
one  kind  of  work  to  work  that  they  can  do  best. 

d.  It  forces  business  to  open  up  channels  for  promotion.  It 
almost  always  enables  a  firm  to  get  help  from  within.  Rarely 
is  it  necessary  to  go  outside  for  skilled  workmen.  When  requi- 
sitions come  for  better  men,  the  positions  are  filled  by  moving 
others  up.  This  means  in  each  transfer  really  fiUing  two  positions; 
one,  the  higher  vacancy,  and  the  other,  the  position  from  which 

199 


MODERN    METHODS    IN    THE    OFFICE 

the  promoted  man  is  taken.  By  this  process  the  outside  market 
is  relied  upon  for  filling  only  the  low-grade  positions  in  each  case. 

e.  It  helps  standardize  wage  and  salary  schedules,  and  thus  is 
a  \'ital  factor  in  regularizing  work.    It  stabiUzes  the  work  force. 

/.  It  is  the  best  method  for  discovering  the  educational  values 
of  the  work  contents  of  the  different  jobs. 

g.  It  aids  in  the  cUscovcry  of  occupational  dangers.  Such  de- 
tailed attention  to  jobs  cannot  help  but  reveal  occupational  health 
hazards,  accidents,  diseases,  and  all  conditions  harmful  to  health. 

h.  It  is  a  great  aid  in  the  wise  and  just  handhng  of  grievances. 
Scientific  job  analysis  is  one  of  the  best  means  for  preventing  griev- 
ances. Many  of  the  disputes  in  industrial  plants  arise  over  injus- 
tice in  wages,  promotions,  transfers,  quahfications  for  particular 
jobs,  etc.  The  only  way  to  settle  a  dispute  scientifically  is  to  know 
the  facts  absolutely.  Job  analysis  will  fortify  a  company  with 
more  scientific  data  essential  to  the  proper  settlement  of  disputes 
than  almost  anything  else.  Job  analysis,  thus  conceived,  is  a  vital 
part  of  a  scientifically  constitut^ed  labor  bureau,  in  that  it  serves 
as  a  clearing-house  of  information  useful  to  all.  It  furnishes  the 
foundation  for  trustworthy  advice  and  sound  guidance." 


How  a  Bank  Can  Help  a  Young  Business  Man 

*'As  it  happens,"  said  a  young  business  man,  "I 
have  plenty  of  capital  for  my  business  and  I  nevei 
need  to  borrow.  Despite  this  I  do  occasionally  obtain 
a  small  loan.  You'd  be  surprised  if  you  knew  my 
motive. 

''When  I  apply  for  a  loan  it  generally  leads  to  a  dis- 
cussion of  my  business  and  its  problems.  The  vice- 
president  of  my  bank  is  a  man  for  whose  judgment  1 
have  the  greatest  respect.  I  doubt  if  he  realizes  how 
much  I  have  learned  from  my  talks  with  him  or  how 
many  of  his  tips  I've  followed. 

200 


TOWARD    EFFICIENCY 

"I  marvel  at  the  young  men  who  overlook  this  op- 
portunity to  obtain  free  advice.  Every  time  you  con- 
sult a  lawyer  it  costs  you  anywhere  from  five  to  five 
thousand  dollars,  depending  upon  the  man  and  the 
subject  of  conversation.  The  lawyer  has  spent  years 
in  securing  his  knowledge  and  very  justly  charges  you 
for  it. 

"Many  bankers  possess  a  vast  fund  of  knowledge 
which  is  just  as  valuable  as  the  lawyer's,  and  in  most 
cases  it's  yours  for  the  asking. 

''The  very  nature  of  a  banker's  duties  means  that 
he  is  constantly  analyzing  the  problems  connected 
with  hundreds  of  establishments.  This  gives  him  a 
broad  grasp  of  practical  economics  and  results  in  the 
acquirement  of  knowledge  which  can  be  applied  to 
almost  any  business. 

''One  New  York  banker  was  recently  hu-ed  by  a  big 
firm  of  wholesale  grocers  at  a  salary  of  one  hundred 
thousand  dollars  a  year.  Any  time  I  can  profit  by  the 
experience  of  a  one-hundred-thousand-dollar-a-year 
man,  free  of  charge,  I  figure  that  I'm  just  so  much  ahead 
of  the  game. 

"My  advice  to  young  men  is  to  stand  well  with  your 
banker.  Keep  on  deposit  a  sum  equal  to  twenty  per 
cent,  of  your  loans;  don't  invest  your  loans  in  per- 
manent assets,  and  clear  up  all  indebtedness  at  least 
once  a  year.  Then  you'll  find  the  banker's  door-mat 
bearing  the  sign  'Welcome,'  and  if  you're  fortunate 
enough  to  be  dealing  with  the  type  of  banker  to  which 
I  refer,  the  shrewd,  keen,  analytical  type,  who  through 
long  experience  has  developed  a  sixth  sense  for  de- 

201 


MODERN   METHODS    IN   THE    OFFICE 

tecting  danger  signals,  you'll  find  that  his  advice  is 
one  of  the  best  business  assets  on  your  books." 


"Most  Concerns  Are  Overstocked,"  says  this  Business  Man 

"I  wonder  how  many  billions  of  dollars  are  tied  up 
in  superfluous  stocks  of  merchandise  in  this  country," 
remarked  the  proprietor  of  a  wholesale  paper-house. 

'^ Consider  the  whole  vast  field  of  business:  manu- 
facturers, jobbers,  agents,  and  retailers;  figure  that 
most  of  them  are  carrying  twice  the  quantity  of  stock 
that  they  need,  and  you're  staggered  at  the  thought 
of  the  total  annual  interest  charge  represented.  This 
condition  is  due  to  haphazard  order-placing  and  a 
lack  of  analysis. 

"Take  my  own  case,  for  example.  About  two  years 
ago  I  found  myself  hampered  by  lack  of  capital.  I 
went  to  my  banker  to  apply  for  a  loan. 

"He  studied  my  statement  closely.  'You  say  you 
want  to  borrow!'  he  exclaimed.  'Why,  Leonard,  you 
ought  to  be  in  a  position  to  lend!  Your  trouble  is 
too  much  money,  not  too  little.  Like  every  paper- 
man  I've  ever  known,  you're  heavily  overstocked. 
I'll  wager  you've  never  analyzed  your  orders  to  arrive 
at  a  standard  of  proper  stock-keeping.  And,  further- 
more, I'll  bet  that  you've  paper  in  your  warehouse 
which  has  been  there  for  over  two  years. 

"'Before  I  lend  you  a  dollar  I  want  you  to  set  your 
clerk  to  analyzing  a  typical  month's  business.  Ascer- 
tain exactly  what  the  demand  is  for.  Reduce  the  result 
to  a  percentage  basis.    Then  see  how  nearly  your  in- 

203 


TOWARD    EFFICIENCY 

ventory  agrees  with  your  findings.  You'll  find  that 
you're  carrying  vast  quantities  for  which  you  seldom 
receive  an  order,  and  that  you're  low  on  lines  for  which 
the  demand  is  frequent. 

"'You  have  at  least  twice  as  much  money  as  you 
need  tied  up  in  stock.  I  know  what  I'm  talking  about 
because  I  once  acted  as  receiver  for  a  bankrupt  paper 
concern.  It  will  take  you  some  time  to  get  yom*  stock 
into  proper  shape.  But  once  you  reduce  it  to  a  proper 
level,  you'll  find  yourself  with  capital  to  invest  in  real 
estate,  bonds,  or  whatever  looks  good  to  you.  You'll 
find  that  you  save  storage  rental  and  waste  from 
depreciation,  as  well  as  interest  on  your  investment. 

'''It's  far  better  to  buy  a  few  items  from  your  over- 
stocked competitors  occasionally  at  a  price  which 
leaves  you  no  profit  than  to  stagger  along  as  you're 
now  doing  under  an  incubus  of  superfluous  merchan- 
dise.' 

"To  make  a  long  story  short,  I  was  appalled  at  the 
result  of  my  analysis.  Plainly  there  was  little  relation 
between  the  actual  demand  and  my  supply  as  showoi 
by  an  inventory.  Thereafter  a  chart  of  the  ideal  stock 
was  checked  weekly  against  my  actual  stock.  It  re- 
quired nearly  a  year  to  effect  an  agreement  between 
the  two. 

"When  this  was  attained  my  investment  was  re- 
duced over  thirty-five  thousand  dollars.  Six  per  cent, 
on  thirty-five  thousand  dollars  is  twenty-one  hundred 
dollars.  And  this  was  not  all  that  I  saved.  Rent, 
depreciation,  labor,  cartage,  all  these  expense  items  were 
reduced,  and  I  didn't  lose  a  dollar's  worth  of  sales." 

203 


MODERN    METHODS    IN    THE    OFFICE 

Centralization — the  Modem  Tendency  in  Business 

''The  economies  resulting  from  centralization  are 
gi'adually  becoming  realized,"  remarked  a  manufact- 
m-er,  recently.  ''And  it's  surprising  to  note  how 
varied  are  the  conditions  to  which  the  principle  applies. 

"Take  the  idea  of  scientific  management.  This  in- 
volves, among  other  factors,  the  centralization  of  the 
thought  to  be  expended  upon  a  job  into  one  depart- 
ment, the  planning  division. 

"Modem  employment  policies  are  based  upon  the 
same  idea.  Instead  of  having  each  foreman  hire  his 
own  help,  as  in  the  old  days,  now  the  more  progressive 
concerns  have  an  employment  department  which  does 
the  hiring  for  the  entire  plant.  Invariably  this  has  re- 
duced the  labor  turnover,  with  the  resulting  economies. 

"Look  at  our  oil-circulation  system  for  a  con- 
crete example  of  this  idea  of  centralization."  The 
speaker  pointed  to  a  small  pump.  "That  pump  dis- 
tributes oil  to  every  machine  on  this  floor.  The  fluid 
passes  through  horizontal  pipes  which  run  beneath  the 
machines,  and  is  forced  upward  through  vertical  pipes 
to  the  point  of  application,  the  cutting  edge  of  the 
tool.  After  serving  its  function,  the  oil  drains  into 
little  reservoirs  and  thence  into  a  drain-pipe  which 
parallels  the  horizontal  distributing-pipe  and,  after 
filtration,  is  elevated  to  a  tank  suspended  from  the 
ceiling  and  once  more  begins  its  circulation  through 
the  plant.  This  plan  saves  the  time  of  my  men  and 
saves  oil.    It  typifies  the  economies  consequent  upon 

centralization. 

204 


TOWARD    EFFICIENCY 

''Many  people  complain  of  the  steady  increase  of 
the  centralization  of  authority  at  Washington.  The 
'states  rights'  men  affect  to  see  in  this  evolution  a 
menace  to  our  liberties.  My  own.  idea  is  that  you  can- 
not stop  this  tendency  even  if  it  were  not  desirable. 
Centralization  means  efficiency.  And  efficiency  means 
progress.  You  can't  turn  the  hands  of  the  clock  of 
time  backward.  Centralization  results  in  many  ad- 
vantages, the  two  most  conspicuous  of  which  are, 
first,  an  avoidance  of  duplication  of  effort,  and,  sec- 
ond, the  delegation  of  duties  to  the  one  man  or  group 
of  men  best  fitted  to  assume  them,  the  specialists  in 
that  line." 

A  Problem  in  Organization 

"Man  rather  than  merchandise  is  the  chief  problem 
of  the  chain-store  owner,"  said  one,  recently.  "Every 
time  you  open  a  new  store  you've  increased  your  risk 
in  this  connection  just  so  much. 

"Here  is  the  way  I've  met  the  problem.  Each  store 
manager  in  my  chain  owns  a  third  of  the  stock  of  that 
particular  store.  This  supplies  the  incentive  for  faith- 
ful, honest  work.  As  he  saves  from  his  earnings,  he 
may,  if  he  wishes,  invest  in  another  store  in  partner- 
ship with  the  manager. 

"Thus  many  of  my  managers  are  interested  not  only 
in  the  success  of  their  own  store,  but  also  in  that  of 
many  of  the  chain.  So  far  this  plan  has  worked  suc- 
cessfully. It  explains,  in  part,  why  our  cost  of  doing 
business  is  but  ten  per  cent.,  a  low  record  for  this 
line." 

205 


MODERN    METHODS    IN    THE    OFFICE 

The  Work  of  the  United  States  Bureau  of  Standards 

The  value  to  the  community  of  the  United  States 
Bureau  of  Standards  is  inestimable.  Through  its  ac- 
tivities, methods  of  scientific  exactitude  are  fast  being 
substituted  in  many  industries  for  old-fashioned  rule- 
of-thumb  tactics. 

Recently  several  dental  experts  spent  two  days  at 
the  bureau  to  obtain  assistance  in  devising  a  method 
of  measuring  the  gradual  changes  in  volume  that  take 
place  during  the  setting  of  amalgams  and  cements 
used  in  filling  teeth.  The  measurements  sought  were 
required  in  order  to  produce  alloys  and  cements  that 
would  neither  expand  and  produce  pain  from  pressure 
in  the  cavity  nor  contract  and  admit  bacteria.  The 
measuring  apparatus  that  had  answered  the  require- 
ments of  five  or  ten  years  ago  was  not  sensitive  or 
reliable  enough  for  the  high-grade  alloys  now  produced. 
Before  the  visitors  left  the  bureau  a  simple  device 
was  constructed  and  given  a  preliminary  test  which 
indicated  a  thoroughly  satisfactory  solution. 

That  the  bureau  would  ever  figure  as  a  board  of 
arbitration,  thus  saving  disputants  thousands  of  dol- 
lars in  legal  expense  and  experts'  fees,  was  never  an- 
ticipated. 

Only  the  other  day,  however,  it  served  in  just  this 
capacity.  A  manufacturer  of  cement-bags  delivered  a 
heavy  shipment  of  his  product  to  a  large  cement 
company.  A  controversy  arose  between  the  two  parties 
as  to  the  method  of  testing  the  bags  to  ascertain 
whether  or  not  they  met  the  specifications.     All  the 

200 


TOWARD    EFFICIENCY 

elements  were  present  for  an  expensive  lawsuit  which 
would  have  cost  the  litigants  as  much  as  the  value  of 

the  goods  involved. 

Happily  it  occurred  to  the  purchaser  to  refer  the 
question  at  issue  to  the  Bureau  of  Standards.  A  series 
of  tests  was  made  which  resulted  in  the  conclusion 
that  the  bags  measured  up  to  standard,  and  the  ne- 
cessity of  appealing  to  the  courts  was  thus  avoided. 

Among  the  recent  visitors  to  the  bureau's  textile 
section  were  a  silk  manufacturer  who  discussed  methods 
of  analyzing  and  testing  silk;  a  bag  manufacturer  who 
discussed  methods  of  testing  various  fabrics;  the 
president  of  a  knitting  company  which  manufactures 
underwear  and  hosiery;  the  secretary  of  the  Silk  As- 
sociation of  America;  and  a  member  of  a  Western 
knitting  company  operating  the  largest  underwear- 
knitting  factory  in  the  world. 

Here  are  a  few  examples  of  the  bureau's  recent  ac- 
tivities: Scale  manufacturers  were  given  an  improved 
form  of  sliding  poise.  Rail  specifications  were  fur- 
nished to  the  government  of  Australia.  Measure- 
ments were  made  of  surface  temperatures  around 
moving-picture  machines.  Problems  connected  with 
the  design  of  a  liquid-air  plant  were  taken  up.  Among 
other  subjects  were:  Spray  method  of  metal-coating; 
improvement  of  brass  castings;  action  of  heat  and 
acids  on  alloys;  testing  of  refrigerators;  testing  of 
lubricating  oils;  thermostat  to  deliver  water  at  a  con- 
stant temperature;  elastic  properties  of  steel  at  high 
temperatures;  relative  merits  of  cast  iron,  wrought 
iron,  and  wrought  steel  for  casing  purposes  for  large 

207 


MODERN    METHODS    IN    THE    OFFICE 

and  deep  wells;  substitute  for  aluminum;  testing  of 
glass;  determination  of  kiln  temperatures;  and  manu- 
facture and  application  of  lime  products. 

Why  a  Shorter  Work-day  Increases  Production 

"What  a  commentary  on  the  intelligence  of  the 
community!"  exclaimed  a  merchant,  as  he  scanned 
the  head-lines  of  the  paper.  ''Strikes  declared  on  all 
sides,  and  more  to  come.  And  the  cost  of  every  strike 
is  finally  met  by  each  one  of  us  in  the  shape  of  higher 
living  costs.  'It's  a  mad  world,  my  masters!'  Each 
man  for  himself  and  the  devil  take  the  hindmost. 

''There  is  a  peculiar  feature  about  the  shorter 
work -day  which  has  but  recently  been  discovered. 
Scientific  tests  have  established  the  fact  that,  in 
many  lines  of  manual  labor,  a  man  will  really  ac- 
complish more  in  eight  hours  than  in  nine  or  ten. 
This  is  not  due  to  any  sentiment  of  gratitude  for  the 
reduction  in  hours;  the  man  consciously  exerts  no 
more  effort  in  an  eight-hour  work-day  than  in  a  nine 
or  ten.  But,  because  the  toxin  of  fatigue  has  less  op- 
portunity to  poison  and  exhaust  the  system,  his  effi- 
ciency is  heightened  and  his  production  increased. 

"In  a  Belgian  plant,  the  hours  of  the  piece-workers 
were  reduced  from  twelve  to  seven  and  a  half.  The 
men  resented  the  cut  because  they  expected  it  to  lower 
their  earnings.  Within  a  short  time  their  pay-enve- 
lopes contained  more  money  than  under  the  old  regime. 
This  surprised  the  men,  but  not  the  management, 
which  had  taken  the  step  with  just  this  object  in  view. 

208 


TOWARD    EFFICIENCY 

''An  English  manufacturing  plant,  located  at  Man- 
chester, tried  the  experiment  of  cutting  their  work- 
week from  fifty-three  to  forty-eight  hours.  The  result 
was  an  increase  in  the  per-capita  production. 

''These  are  but  two  of  many  similar  instances.  Thus 
we  find  that  although  labor  demands  the  eight-hour 
day  because  it  wants  more  time  for  rest  and  recreation, 
the  fact  of  the  matter  is  that,  in  many  cases,  it  is  to 
capital's  interest  to  grant  it. 

"Can't  you  see  a  grotesque  element  of  humor  in 
that  situation?  A  strike  is  called  for  shorter  hours; 
the  employer  says  that  he  can't  afford  to  grant  the 
demand,  and  thereupon  hires  a  band  of  assassins  and 
plug-uglies  to  break  the  strike.  Riot  and  anarchy 
prevail;  production  ceases;  the  mihtia  is  called  out; 
and  you  and  I  complain  of  the  increased  cost  of  living. 
And  if  both  parties  to  the  controversy  but  realized  it, 
the  men  are  trying  to  force  the  management  to  make 
more  money.  If  you  doubt  this,  read  Miss  Josephine 
Goldmark's  book.  Fatigue  and  Efficiency,  issued  by  the 
Russell  Sage  Foundation  of  New  York.  You'll  begin 
to  realize  that  many  apparently  conflicting  interests 
are  really  not  so  at  all;  that,  as  Henry  Ford  says,  the 
squarer  deal  you  give  your  men  the  bigger  your  bank 
balance  becomes." 


THE   END 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 

Los  Angeles 

This  book  .s  DUE  on  the  last  d.te  stamped  below. 


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